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cestrela7 [59]
3 years ago
5

A municipal bondholder buys a 5 percent coupon annual payment muni bond at a price of $4,900. The bond has a $5,000 face value.

In one year she sells the bond for $4,975. The appropriate capital gains tax rate is 15 percent and her ordinary income tax rate is 28 percent.
A. What is her after-tax rate of return?
Business
1 answer:
Levart [38]3 years ago
3 0

Answer:

the after tax return on the investment is 6.40%

Explanation:

5% interest on the face value: 5,000 x 5% = 250 this interest are tax exempt.

capital gain:

4,975 - 4,900 = 75

75 x 15% = 11.25

net return: 75 - 11.25 = 63.75

total return: 250 + 63.75 = 313.75

investment 4,900

313.75 / 4900 = 0,064030 = 6.40%

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JulsSmile [24]
Your friend is in the category of people considered to have HIGH INCOME.

Friend's salary is more than $1 million and he lives off a credit card. He has high income but net worth can't be determined.

5 0
3 years ago
A warranty in which the seller warrants that he or she has valid title to the goods he or she is selling and that the transfer o
balandron [24]

Answer:

of good title.

Explanation:

A good can be defined as any physical object or material that typically satisfy and meets the demands, needs or wants of customers. Some examples of a good are mobile phones, television, microphone, microwave oven, bread, pencil, freezer, beverages, soft drinks, etc.

A warranty can be defined as a written promise or guarantee made by a manufacturer, lessor or seller about the identity or quality of goods and services or a property to a purchaser, promising him or her to repair or replace it if necessary within a specified time frame.

Hence, a warranty in which the seller of a good or service warrants that he or she has valid title to the goods he or she is selling and that the transfer of title is rightful is known as a warranty of good title.

A legal title can be defined as the actual (absolute) ownership of a property that is recognized and enforceable in a court of competent jurisdiction.

5 0
3 years ago
Hair Stylist Woes. Maryann went to see her hair stylist, Candy. Maryann, who had black, curly hair, requested straight, blond ha
Tom [10]

The statement in regards Candy is that Maryann is incorrect because general damages would be presumed. Thus the correct option is (D).

<h3>What are General Damages?</h3>

Damages that inevitably and directly result from a contract breach. Or, to put it another way, those losses that, in a perfect world, every damaged party would sustain is known as the General Damages.

As per the above situation, Candy is suffering from the loss of the reputation due to the Maryann actions against her for writing the editorial and spreading the wrong news about her saloon.

Candy is the subject of the claim, and Maryann is mistaken since general damages would be assumed. hence, the appropriate choice is (D).

Learn more about breach of contract here:

brainly.com/question/24259882

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3 0
2 years ago
A monopoly A. ​doesn't lose any sales when it raises its price. B. must have a patent to protect its products. C. produces the m
Ugo [173]

Answer:

A. ​doesn't lose any sales when it raises its price

Explanation:

  • As monopoly is ruled by one set of prices and they are price makers thus even f the prices rise the price will be set above the marginal cost to maximize the profits. Thus a monopoly does not lose its market share as it acts as a single dominating factor in the supply and trade of the goods and services. And it stipulates the financial dealing through a single seller.
6 0
3 years ago
According to the FTC's historical guidelines for mergers, would the FTC approve a merger between two firms that would result in
Alborosie

Answer:

B. Maybe. The FTC would scrutinize the merger and make a case-by-case decision.

Explanation:

If we considered the historical guidelines of FTC for the merger purpose so may be FTC could permit the merger between the two firms that could result in HHI of 1,025 after the merger as the merger represent the moderal level of the concentration in the market area so here FTC should analyzes the merger with cash to cash basis

Therefore the option b is correct

8 0
3 years ago
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