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
8_murik_8 [283]
3 years ago
12

An investor is in a 30% combined federal plus state tax bracket. If corporate bonds offer 9% yields, what yield must municipals

offer for the investor to prefer them to corporate bonds? (Round your answer to 1 decimal place.)
Business
1 answer:
Mkey [24]3 years ago
7 0

Answer:

after tax yield on corporate bonds  = 6.3 %

Explanation:

given data

federal plus state tax bracket = 30%

corporate bonds  yields = 9%

solution

we get here yield that must municipals offer for the investor is express as

after tax yield on corporate bonds = corporate bonds  yields × ( 1 - federal plus state tax bracket  )   ......................1

put here value and we will get

after tax yield on corporate bonds = 9% × ( 1 - 30% )

after tax yield on corporate bonds = 0.09 × ( 1 - 0.30 )

after tax yield on corporate bonds  = 0.063

after tax yield on corporate bonds  = 6.3 %

You might be interested in
When economists speak of "demand" in a particular market, they refer to?
saveliy_v [14]
Demand is the quantity of a good or service for which a consumer is willing to buy and a company is willing to sell at a given price at a specific time. For the entire market, the demands for the buyers are summed to find the market demand. 
4 0
3 years ago
Salma asked Lillie, "How did you do in the final assessment?" Lillie responded, "I knew everything!" Salma said, "So you can exp
Virty [35]

Answer:

A confidence estimate.

Explanation:

Confidence estimate is a statistical representation for the possiblity of occurance of any event. The confidence estimate is shown by using interval of estimate, it also known as confidence internal estimation. It show an approximate value of the unknown parameter of probablity distribution. It is useful as defence against judgmental biases.

6 0
3 years ago
Write a sample professional greeting you would record on your professional cell phone to be heard by employers and recruiters if
egoroff_w [7]

Answer:

<em>hello you have reached Micah micks office line if this is an emergency please hang up and call my personal line if this isn't please leave an voicemail and ill get back to you shortly thank you goodbye</em>

Explanation:

5 0
3 years ago
Read 2 more answers
Which of the following statements are true regarding profit-maximizing firms?A.They will attempt to maximize the difference betw
Gennadij [26K]

Answer:

For a profit maximizing firm , the statement that will be true is A) they will attempt to maximize the difference between total revenues and total costs.

Explanation:

The basic formula that is used to calculate profit is  -

Profit = Total revenue - Total cost

Profit maximization is a concept according to which a firm who is looking for maximizing its profits, should choose that optima level of output where its marginal cost ( cost that is incurred because of producing one additional unit of good ) and marginal revenue ( change in revenue because of change in sales ) are same.

When the marginal revenue is greater than the marginal cost , it means that the revenues generated by producing additional quantity of goods is greater than the cost incurred on producing them, so hence we can say that for maximizing profit , a firm would want that the gap between revenue and cost is higher.

4 0
3 years ago
Cheyenne Corp. uses the percentage of receivables method for recording bad debts expense. The accounts receivable balance is $17
Karolina [17]

Answer:

Adjusting entry amount shall be $ 5,100

Explanation:

Computation of adjustment to Allowance for Doubtful accounts

Accounts Receivable balance                                             $ 170,000

Percentage of allowance for Doubtful accounts                     5 %

Allowance for Doubtful accounts - $ 170,000 * 5%            $ 8,500

Existing balance of Allowance for Doubtful accounts        <u>$ 3,400</u>

Adjusting entry to Allowance for Doubtful accounts         $ 5,100                

8 0
3 years ago
Read 2 more answers
Other questions:
  • Which type of economy provides the least incentive for companies and workers to improve?
    14·2 answers
  • A manufacturer with a product in the decline stage of the product life cycle would most likely decide to ________ if there is re
    6·1 answer
  • Suppose that all 75 employees of a company received a raise of $150 per month? How would this affect the mean salary of all empl
    15·1 answer
  • Anders is researching sociocultural factors related to his employer, a sporting goods manufacturer.Which of the following would
    14·1 answer
  • assey Corporation purchased a piece of land for $50,000. Massey paid attorney's fees of $5,000 and brokers' commissions of $4,00
    7·1 answer
  • Watson Company applies overhead on the basis of machine hours. Given the following data, compute the amount of overhead applied
    15·1 answer
  • Presented below is information from Sandhill Computers Incorporated. July 1 Sold $20,000 of computers to Robertson Company with
    12·1 answer
  • What are the portfolio weights for a portfolio that has 190 shares of Stock A that sell for $95 per share and 165 shares of Stoc
    7·1 answer
  • Hanson, Inc. requires its marketing managers to submit estimated cost-volume-profit data on all requests for new products, or ex
    9·1 answer
  • north company budgets overhead costs for the next year of $5,240,000 for indirect labor and $550,000 for factory utilities. the
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!