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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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Marks Corporation has two operating departments, Drilling and Grinding, and an office. The three categories of office expenses a
Ludmilka [50]

Answer:

$44,377

Explanation:

Note: The answers (options) attached this question belongs to another question

Particulars                                                             Amount

Salaries ($48,000*1,200/3,500)                           $16,457

Depreciation ($24,000*$102,600/$270,000) $9,120

Advertising ($47,000*$346,000/$865,000) <u>$18,800</u>

Total                                                                       <u>$44,377</u>

5 0
2 years ago
The purchase and sale of long-term assets and current investments are classified as:
Sveta_85 [38]

ash transactions that encompass purchase as well as sale of long-term assets as well as current investments can be considered to classified as Investing activities.

  • Investing activities can be regarded as one of the categories of net cash activities which is been reported by business on the cash flow statement.

  • It is the purchase as well as sale of long-term assets at a given period.

Therefore, Investing activities is correct.

Learn more at:

brainly.com/question/13158188?referrer=searchResults

8 0
2 years ago
Direct labor and indirect labor are recorded, respectively, to:A. Factory Overhead and Goods in Process.B. Goods in Process and
alexgriva [62]

Answer: The correct answer is "D. Goods in Process and Factory Overhead."

Explanation: Direct labor: it is the labor consumed in the areas that are directly related to production. It is generated by the workers or operators of the company. It is part of the cost that is incorporated directly into the product. Therefore it is registered as goods in process.

Indirect labor: it is the labor consumed in the administrative areas of the company or that production staff that does not participate directly in the production of the good. As it is part of the cost that is indirectly incorporated into the product, it is considered factory overheads.

4 0
3 years ago
Dss use internal information as well as information from external sources.
koban [17]
True Hope this helps
3 0
3 years ago
Read 2 more answers
Suppose Stuart Company has the following results related to cash flows for 2021: Net Income of $5,600,000 Increase in Accounts P
seropon [69]

1. The statement of cash flows of Stuart Company for the year ended December 31, 2021, is as follows:

Stuart Company

<h3>Statement of Cash Flows</h3>

For the year ended December 31, 2021,        $'000

Net Income                                                     $5,600

Depreciation                                                      1,900

Other Adjustments                                            (800)

Increase in Accounts Payable                           600

Decrease in Accounts Receivable                    900

Increase in Inventory                                        (200)

Net Cash Flow from Operating Activities $8,000

2. The Net Cash Flow from Operating Activities for Stuart Company for 2021 is <u>$8 million</u>.

<h3>What are operating activities' cash flows?</h3>

The cash flows from the operating activities section affect revenues and expenses.

They indicate the cash flows that originate from the regular business activities of the entity.

To prepare the statement of cash flows, the first items to adjust the net income are the non-cash expenses and losses and revenues and gains.

Learn more about the operating activities section at brainly.com/question/25530656

#SPJ1

8 0
2 years ago
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