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Olenka [21]
3 years ago
14

A corporation can earn 7.5% if it invests in municipal bonds. The corporation can also earn 8.40% (before-tax) by investing in p

referred stock. Assume that the two investments have equal risk. What is the break-even corporate tax rate that makes the corporation indifferent between the two investments?
Business
1 answer:
Lostsunrise [7]3 years ago
4 0

Answer:

A tax rate of 10.71% should make both both indifferent for investors.

Explanation:

the municipal bonds are income-tax free so we should solve for the tax rate which makes both bonds equaly attractive.

0.075 = after-tax rate

0.084 = pre-tax rate

pre-tax (1- t) = after-tax\\0.084 (1-t) = 0.075\\1 - t = 0.075 \div 0.084\\t = 1 - 0.075 \div 0.084\\t = 0.10714285

A tax rate of 10.71% should make both both indifferent for investors.

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EX 7.13. Create an interface called Visible that includes twomethods: makeVisible and makelnvisible. Both methods should takeno
lord [1]

Answer:

public class Icon implements Visible

{

       // instance variable

      //Constructor variable

      Public Icon()

      {  

         //implementation

                                      }

     //two methods will be implemented make visible and makeInvisible with the signage and return type

       //displayed below

\        public boolean<em> makeVisible</em>()

        {

                    //the implementation is registered here

      public boolean <em>makeInvisible</em>()

      {       //implemetation will be here

                                                              }

       //other methods are of this type

Explanation:

Create an interface called Visible that includes twomethods: makeVisible and makelnvisible. Both methods should takeno parameters and should return a Boolean result. Describe how aclass might implement this interface.public interface Visible{public: boolean makeVisibleO;public boolean makelnvisibleO;

The above can be executed as a javascript

public class Icon implements Visible

{

       // instance variable

      //Constructor variable

      Public Icon()

      {  

         //implementation

                                      }

     //two methods will be implemented make visible and makeInvisible with the signage and return type

       //displayed below

\        public boolean<em> makeVisible</em>()

        {

                    //the implementation is registered here

      public boolean <em>makeInvisible</em>()

      {       //implemetation will be here

                                                              }

       //other methods are of this type

5 0
3 years ago
Puget Sound Divers is a company that provides diving services such as underwater ship repairs to clients in the Puget Sound area
notsponge [240]

Answer:

$50,094.8

Explanation:

Flexible Budget are budget prepared by taking the actual activity level achieved at standard cost/price. WHILE

q is taken as the actual level of activity which is 240 diving hours.

Puget Sound Divers

Flexible Budget For the Month Ended May 31

Revenue ($440.00 ×240) $105,600

Expenses:

Wages and salaries ($11,800 + $128.00×240) $42,520

Supplies ($3.00 ×240) $720

Equipment rental ($2,100 + $22.00 ×240) $7,380

Insurance ($4,000) $4,000

Miscellaneous ($530 + $1.48×240) $885.2

Total expense $55,505.2

Net operating income ($105,600- $55,505.2) $ 50,094.8

Net operating income =Revenue - Total expenses

3 0
3 years ago
Read 2 more answers
Which of the following bank services pays the customer compound interest?
Gnom [1K]
Based on the given question above, the correct answer for this would be option C. The bank service that pays the customer compound interest is a saving account. <span>A </span>savings account<span> is an interest-bearing deposit </span>account<span> held at a </span><span>bank. Hope this is the answer that you are looking for. Have a great day!</span>
4 0
3 years ago
What information does a supply schedule provide?
lesya [120]

Answer:

See below

Explanation:

A supply schedule shows the quantities that suppliers are willing to sell in the market at different prices. It is a table format with quantity on one column and prices on another. As per the law of supply, high prices lead suppliers to supply more at the market.

The supply schedule illustrates in a table format the relations between the price and the quantity supplied. It will show how the quantity increase as prices increases. The supply schedule is a tabular representation of the supply curve.

7 0
3 years ago
Which of the following are objects that can fulfill needs or wants?
ycow [4]

Answer:

the word objects makes me think B. also, wants can be fulfilled by objects, not tools or economics.

Explanation:

6 0
2 years ago
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