1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
ziro4ka [17]
3 years ago
6

Carter Corporation has some money to invest, and its treasurer is choosing between City of Chicago municipal bonds and U.S. Trea

sury bonds. Both have the same maturity, and they are equally risky and liquid. If Treasury bonds yield 6%, and Carter's marginal income tax rate is 40%, what yield on the Chicago municipal bonds would make Carter's treasurer indifferent between the two
Business
1 answer:
padilas [110]3 years ago
3 0

Answer:

If Chicago municipal bonds yield  is 10% then Carter's treasurer make indifferent between the two.

Explanation:

Because Treasury Bond is exempt from tax income and both have same maturity, and they are equally risky and liquid; we then have the equation as below

Treasury bonds yield = Chicago municipal bonds yield after tax

⇔ 6% = Chicago municipal bonds yield * (1 - tax rate 40%)

⇔ 6% = Chicago municipal bonds yield * 0.6

⇒ Chicago municipal bonds yield = 6%/  0.6 = 10%

You might be interested in
Nce managers of The Grecian Urn have decided on their product concept and marketing strategy, they can evaluate the business att
Nataliya [291]

Answer:

2. feasibility study

Explanation:

A feasibility study is done to analyse whether for example a school should or not expand the building open new sections and so on. the study also evaluates for labor and work in progress. It is an analysis of a proposed project to determine whether it is feasible and should go further. Feasibility is further divided into different categories such as economical , technical, operational etc. It aims to check the competitiveness of the business in the market and check its economic growth.

6 0
3 years ago
How did you feel while you were filling out the inventory?nervous, curious, stressed, relaxed, etc
Usimov [2.4K]
I feel stressed reading this question as it has no context but the question is asking for your opinion. there really is no wrong answer
8 0
2 years ago
Read 2 more answers
A lender uses a credit report to _____.
MrRissso [65]
I am pretty sure it's to decide if the applicant is creditworthy. ( Makes most sense. Did research too.)  :)
7 0
3 years ago
Read 2 more answers
When using statistics to support a speech, it is best to do all of the following except:
Stells [14]
When using statistics to support a speech, it is best to do all of the following except:
d. use a lot of statistics in a speech to make the speech exciting.

This is an example of too much tends to overwhelm your audience. A few very well done graphics can convey more and catch their attention.

Statistics are to enhance the message you are relaying.
8 0
2 years ago
Read 2 more answers
g Suppose the own price elasticity of demand for good X is -3, its income elasticity is 2, and the cross price elasticity of dem
kozerog [31]

Answer:

Sry, I can't understand anything at all!

7 0
3 years ago
Other questions:
  • In its income statement for the year ended December 31, 2022, Pina Colada Corp. reported the following condensed data. Operating
    6·1 answer
  • In a sales mix situation at any level of units sold net income will be higher if
    10·1 answer
  • You are planning to purchase displays for your store which has 2,400 sq ft of selling space. Each display has a footprint of 10
    8·2 answers
  • What does consumer vigilance mean
    15·2 answers
  • Jason, a manager, directs the efforts of others through tasks, rewards, and structures. he uses the __________ approach to leade
    10·1 answer
  • The major drawback of most fad diets is:
    14·1 answer
  • Assume that on September 1, Office Depot had an inventory that included a variety of calculators. The company uses a perpetual i
    7·1 answer
  • What economic benefit has the debt reschedule for developing countries?
    10·1 answer
  • Zaira, a registered nurse, is tired of working long hours at the hospital and is looking for a different job in her field. What
    14·1 answer
  • The periodic expense created by allocating the cost of plant and equipment to the periods in which they are used, representing t
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!