Answer:
C) 4.50 percent
Explanation:
It is given that :
Interest a corporate bond pays = 6.25 percent
The marginal percent tax bracket is given as : 28 %
We have to find the amount that the municipality bond shall pay to be the equivalent to the amount after the tax basis :
We known that the municipal bond is tax exempted after the corporate tax bond should be equal to the municipal bond to be indifferent.
Thus, rate of return = rate of return after tax = rate x (1 - tax rate)
= 6.25 % x (1 - 0.28)
= 4.50 %
Therefore the answer is = 4.50 %
Answer:
A. True
Explanation:
Option A is correct because PIRs (planned independent requirements) are calculated based on actual and forecasted sales.
In PIR, the independent requirement for final goods is calculated by the sales and the activities /operation for material planning process.
Answer:
A) DOL = 1.33 times; DFL = 1.80 times; and DCL = 2.4 times
B) Next years expected Earnings before interest and tax = $5.5 million; and Net years expected net income = $2.45 million
C) Next years expected Earnings before interest and tax = $2.5 million; and Net years expected net income = $0.35 million
Explanation:
Note: This platform did allow the explanation to be saved here as it was claiming it contains swearwords. Please, see the attached pdf file for the full answer and explanation.
Answer: Option (c) is correct.
Explanation:
Correct option: The demand facing the firm is downward-sloping because it is the market demand.
In a monopoly market conditions, there is a single seller in the market and the monopolist firm is price setter. But the demand curve faced by the monopoly firm is downward sloping because monopolist is a single firm who is operating in the market and there is a need to reduce prices if he wants to sell an additional units.
Answer:
d. both countries, as whole, will be better off.
Explanation:
When countries leverage on their comparative advantages, they will be better off. In this instance as US has comparative advantage in producing airplanes, it will be more cost effective for them to produce and export to Japan.
So also Japan will find it cheaper to produce televisions and export to the US. Both contries reduce cost by producing goods they have comparative advantage in.
