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
Vikentia [17]
3 years ago
14

An investor purchases one municipal and one corporate bond that pay rates of return of 8% and 10%, respectively. If the investor

is in the 20% marginal tax bracket, his or her after tax rates of return on the municipal and corporate bonds would be ________ and ______, respectively.
Business
1 answer:
Alinara [238K]3 years ago
5 0

Answer:

rate of return will be 8% and 8%

Explanation:

given data

municipal bond = 8%

corporate bond = 10 %

marginal tax = 20 %

solution

we know that here

Municipal bond no taxes are levied

hence after tax rate of return will be 8%

and

Corporate bond

after tax rate of return will be

rate of return   = 10% × ( 1 - 0.20 )

rate of return   = 8 %

You might be interested in
The best business portfolio is the one that ________.
KengaRu [80]

Answer:

The correct answer to the following question is option B, which is best fits the company's strengths and weaknesses to opportunities in the environment.

Explanation:

The contributing and the collecting of services and the products which are provided by the company. Many of the businesses and the companies will busy in business portfolio analysis as their section of their strategic planning.

Business portfolio is important because it demonstrates your skills and it increases your building trust which means when he or she sees your quality work and it can develop the trust about your business and also it helps in minimizing keep rejection of our services and the product.

6 0
3 years ago
The price elasticity of demand if the price of a pint falls from $8 to $6 is
melamori03 [73]
It means to say that the demand of the product is decreasing.  The relationship between the price and demand is one way. It means to say that if the price increases, the demand is higher. In this scenario, the price increases to avoid shortage on the product. If the price is decreasing, it means to say that the demand is decreasing and can possibly cause surplus on the said product. Lowering the price allows consumers to have higher purchasing power and enticing them to purchase such product.
6 0
3 years ago
Sherrie Hymes holds a $200,000 portfolio consisting of the following stocks. The portfolio's beta is 0.875. Stock Investment Bet
yuradex [85]

Answer:

The portfolio’s new beta will be 1.125

Explanation:

In this question, we are interested in calculating the portfolio’s new beta given the value of the beta of the stock which is used in replacing it.

We apply a mathematical approach here.

Mathematically;

Portfolio beta=Respective beta * Respective investment weight

=(50,000/200,000*1.5)+(50,000/200,000*0.8)+(50,000/200,000*1)+(50,000/200,000*1.2)

= 0.375 + 0.2 + 0.25 + 0.3 = 1.125

8 0
3 years ago
What is the net present value of a project with the following cash flows if the required rate of return is 9 percent?
inna [77]
<span>Year Cash Flow
0 -$46,400 
1 18,000 
2 33,530 
3 4,600</span>

<span>NPV = -$46,400 + $18,000 / (1 + 0.09) + $33,530 / (1 + 0.09)2 + $4,600 / (1 + 0.09)3 = 

</span><span>-$1,574.41</span>

7 0
3 years ago
The reason a professional such as a lawyer or doctor would incorporate his/her business is
Nesterboy [21]

Answer:

(3) to protect his/her other assets with limited liability.

Explanation:

The reason a professional such as a lawyer or doctor would incorporate his/her business is to protect his/her other assets with limited liability. Limited liability will be very good option for the professionals such as lawyer and doctors because it provides a sense of security. Limited liability secures the owners from any kind of loss if happens in business. Although, it is obviously much costlier but personal assets of the owners are also secured in the case if the business goes bankrupt therefore, it is the very best option for the professionals.

7 0
2 years ago
Other questions:
  • Early in your first term as President of the United States you faced an economy in the beginnings of a recession. Which of the f
    7·1 answer
  • Are pieces of information that are sent into, or passed to, a method, usually because the method requires the information to per
    11·1 answer
  • In his work with companies, henry gantt found that workers achieved their best performance levels if they were trained first. tr
    14·1 answer
  • One reason for developing contingency plans for permit-approved special events is to:
    7·1 answer
  • Rudd Corp. had 700,000 shares of common stock authorized and 300,000 shares outstanding at December 31, 2016. The following even
    12·1 answer
  • ) Which protections exist under the Servicemembers Civil Relief Act? Check all that apply.
    6·1 answer
  • It is receiving $3,000/month from a disability income policy in which T's employer had paid the premiums. How are the $3,000 ben
    13·2 answers
  • What do socialism and communism have in common? Economics
    11·2 answers
  • Shareholders in Frontier Communications were not pleased to learn that the company's market share had changed from 40 to 21 perc
    11·1 answer
  • Outback Corp. recorded sales of $1,300,000 in 2010, in addition the company's accounts receivable balance grew from $120,000 at
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!