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
leonid [27]
3 years ago
7

Assume that Juanita is indifferent between investing in a corporate bond that pays 12.00 percent interest and a stock with no gr

owth potential that pays a 8.10 percent dividend yield. Assume that the tax rate on dividends is 15 percent. What is Juanita's marginal tax rate?
Business
1 answer:
Dennis_Churaev [7]3 years ago
3 0

Answer:

Juanita's marginal tax rate is 42.5%

Explanation:

marginal tax rate = MTR

After tax yield of dividend paying stock is 8.1% * (1-0.15) = 0.069 = 6.9%

The after tax yield of the bond will be 6.9%

Therefore,

6.9% = 12.0% * (1 - MTR)

6.9% = 12.0% - 12.0% *MTR

6.9% - 12.0% = -12.0% * MTR

-0.051 = -0.12*MTR

MTR = 0.051/0.12 = 0.425

MTR = 42.5%

You might be interested in
The business owner used $25000 from their personal savings account to but common stock in their company. what would be the journ
irina1246 [14]

The accounting entry is to Credit Cash for 25000 and Debit Common Stock for 25,000

<h3 /><h3>What is journal entry?</h3>

Journal entry shows how a business financial transactions are being recorded.

Typically, when cash is withdrawn from a business or personal account, the accounting entry is to credit the cash account.

Hence, the accounting entry is to Credit Cash for 25,000 and Debit Common Stock for 25.000.

Learn more about journal entry here : brainly.com/question/14279491

#SPJ1

7 0
2 years ago
The four key types of ratios that investors monitor are liquidity ratios, leverage ratios, profitability ratios and _______ rati
mash [69]
I believe it is Activity Ratios. Hope this helps!
7 0
3 years ago
Read 2 more answers
Could someone help me please?!
never [62]
Help whit what business do you have 
6 0
2 years ago
A corporation reports the following year-end balance sheet data. The company's debt ratio equals: Cash $ 40,000 Current liabilit
Lady_Fox [76]

Answer:

0.37

Explanation:

The formula to compute the debt ratio is shown below:

= Total liabilities ÷ Total assets

where,

Total liabilities would be

= Current liabilities + Long term liabilities

= $75,000 + $35,000

= $110,000

And, the total assets would be

= $300,00

Now put these values to the above formula  

So, the ratio would equal to

= $110,000 ÷ $300,000

= 0.37

4 0
3 years ago
Suppose that France and Austria both produce rye and wine. France's opportunity cost of producing a bottle of wine is 4 bushels
miv72 [106K]

Answer:

France has comparative advantage in production of wine

Austria has comparative advantage in production of rye.

4 bushels of rye for each bottle of wine

1 bottle of wine for each bushel.

b. 4 bushel of rye per bottle of wine.

Explanation:

France has comparative advantage in producing wine as it has opportunity cost of 4 bushels per bottle of wine. Austria has comparative advantage in producing bushels as it has opportunity cost of 10 bushels per bottle of wine. The both countries can gain advantage if they agree for 4 bushels per wine.

3 0
3 years ago
Other questions:
  • against the foregoing background obtain any road road traffic policy and demonstrate your understanding of that particular polic
    10·1 answer
  • Thirsty Thelma owns and operates a small lemonade stand. When Thelma is producing a low quantity of lemonade she has few workers
    15·1 answer
  • In order to break a stalemate in peace negotiations, president nixon ordered ground attacks in which country?
    6·2 answers
  • The Marshall Company has a process costing system. All materials are added when the process is first begun. At the beginning of
    8·1 answer
  • Bella’s Beauties sells vacuums and shampooers. The vacuums have a unit selling price of $60 and unit variable costs of $20. The
    7·1 answer
  • On January 1, 2018, Green Corporation purchased 30% of the outstanding voting common stock of Gold Company for $300,850. The boo
    6·1 answer
  • The following list includes selected permanent accounts and all of the temporary accounts from the December 31, 2018, unadjusted
    7·2 answers
  • In practice, a common way to value a share of stock when a company pays dividends is to value the dividends over the next five y
    15·1 answer
  • Which sector dominates developed economies such as the United States? In developed economies such as the United States, the sect
    11·1 answer
  • Make a list of profession and identify their levels​
    8·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!