Answer: c) High-tax
Explanation:
Municipal bonds are quite attractive because they offer returns that are free of Federal taxes which means that the return quoted on them is the after-tax return already.
For this reason their returns are usually less than corporate bond returns. Investors in high tax brackets will therefore be attracted to municipal bonds as it gives them a chance to get tax savings on amounts they would have paid as taxes.
Answer:
Option B
Explanation:
In simple words, Activity-based budgeting (ABC) is a better way to allocate overhead expenses. The expense of each recurrence of an overlay occurrence throughout the procedure is determined during first step of allocation. The cost of every incidence is then allocated to individual things manufactured by the company inside the second stage.
Thus, from the above we can conclude that the correct option is B.
Answer:
The investor will most likely to report taxable income from the bond annually until maturity
Explanation:
Original issue discount tax requires that the investor make provision for part of original issue discount in his taxable income every tax year until maturity. The interest is not payable until it accrued and it is calculated as difference between the bond's par value and its original issue price.
Question Completion with Options:
A. Should we take a break and come back in an hour?
B."What if we proceed down this path and it fails?
C. Do we have at least three alternatives to consider?
D." How long do we have to rehash these alternatives before we can move on?
E. Why are you not participating in this discussion?"
Answer:
C. Do we have at least three alternatives to consider?
Explanation:
By asking for at least three other alternatives or solutions to the overriding problem under discussion, the Finance Director will be motivating her team members to think further on the solutions. She is broadening the groupthink so that all ramifications and considerations are brought to the fore before any conclusions can be reached. This is the most relevant question that elicits further discussions in any group.
