Shares are traded on a stock exchange
Answer:
Implicit tax rate = 0.1778 or 17.78 %
Explanation:
given data
municipal bond = 1.48% = 0.0148
corporate bonds = 1.80% = 0.0180
solution
we get here Implicit tax rate that is express as
Implicit tax rate = ( corporate bonds - municipal bond ) ÷ corporate bonds ........................1
put here vale and we will get
Implicit tax rate =
solve it we get
Implicit tax rate = 0.1778 or 17.78 %
Answer:
$10,000 in 20X1 and $0 in 20X2
Explanation:
Pink is allocated $10,000 ($40,000 x 25%) of income in 20X1. In 20X2, Pink is allocated $0 income, as distributions are generally NOT taxable if they do not exceed basis
A new purchase requires a great deal of research and thought in a business-to-business relationship. c:
Answer:
Using put call parity:
C + X/(1+r)^n = S+P
C + 18/(1+0.08)^1 = 20+3.33
C + 18/1.08 = 20 + 3.33
C + 18/1.08 = 23.33
C + 16.67 = 23.33
C = 23.33 - 16.6667
C = 6.67
The call price ($7) is over price, so we should sell call and buy underlying ($6.67). After one year, the underlying option will get a gain of $0.33 ($7-$6.67). So, we should exploit this arbitrage opportunity.