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Kitty [74]
3 years ago
14

Fergie has the choice between investing in a State of New York bond at 4.1 percent and a Surething Inc. bond at 6.8 percent. Ass

uming that both bonds have the same nontax characteristics and that Fergie has a 30 percent marginal tax rate, what interest rate does the state of New York bond need to offer to make Fergie indifferent between investing in the two bonds? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Business
1 answer:
iragen [17]3 years ago
7 0

Answer:

The state of New York should offer bonds at 4.76% to make indifference to purchase their bonds than Surething Inc.

Explanation:

the corporation has to pay income taxes while the State of New York do not pay for income taxes thus his yield is after-tax.

Surething Inc after tax rate:

pre-tax x (1 - tax-rate) =6.8% x ( 1 - 30%) = 0.068 x (1-0.30)  = 0.0476 = 4.76%

Currently the corporation bond yield a higher rate than the State of New york (4.76% against 4.10%)

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The inventory level will be used by an inventory manager to regulate the optimal time for manufacturing, if they are handling a manufacturer's warehouse, or to demand more if the product is being stored as stock at a store.


To solve this:

Get first the Current Assets this solved by multiplying the current liabilities to the current ratio.

CA = $500 (1.5) = $750


Then get the inventory level by multiplying the current asset to the product of the current liabilities and quick ratio.

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4 0
3 years ago
A stock had returns of 17.88 percent, −5.16 percent, and 20.39 percent for the past three years. What is the variance of the ret
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Variance of the return = 0.01983

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S^{2}= Σ(X-X)^{2}/ N - 1

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Variance = [0.004683 + 0.026233 + 0.008748]/2

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6 0
3 years ago
Which example would the government consider as intellectual property?
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Answer:

A

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Answer:

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