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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 %

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Economic growth is _____.
erica [24]

economic growth can result from a(n) _____ in government expenditures and a(n) _____ in net exports.

5 0
3 years ago
Before a firm is allowed access to the European marketplace, the European Union requires that the quality of the firm’s manufact
Eduardwww [97]

Answer:

ISO 9000

Explanation:

In this question, the quality of standard being mentioned is known as the ISO 9000. This is a set of standards that helps organizations make sure that they are meeting the customer and shareholder needs as well as complying to the statutory and regulatory requirements that exist regarding the product or service. This is the main quality of standards that are enforced and required by the European Union for every firm in its marketplace.

3 0
3 years ago
Answer the question on the assumption that the legal reserve ratio is 20 percent. suppose that the fed sells $500 of government
mel-nik [20]

The sale and purchase of government securities by the Fed would leave reserves unchanged.

<h3>What is the effect of the purchase and sale of government securities?</h3>

The Fed is the Central Bank of the United States. One of the duties of the Fed is to conduct monetary policies. Monetary polices are used to affect the level of money supply in the economy.

One of the monetary policy tools of the Fed is open market operation. When the Fed sells government securities, it is known as an open market sales which reduce money supply. When the Fed buys government securities, it is known as an open market purchase which increases money supply.

Reserve ratio is the percentage of deposits that is required of commercial banks to keep as reserves. Reserve ratio is determined by the Fed.

Change in reserve = (  value of government securities bought / reserve ratio) - (value of government securities sold / reserve ratio)

($500 / 0.2) - (500 / 0.2)  = 0

To learn more about reserve ratio, please check: brainly.com/question/6831267

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7 0
2 years ago
Ida Sidha Karya Company is a family-owned company located in the village of Gianyar on the island of Bali in Indonesia. The comp
Rom4ik [11]

Variable costing unit product cost  $ 779.

Manufactured merchandise is bought.

Units in beginning inventory   0  

 Units produced                         13,000  

 Units sold                                   9,000  

Units in ending inventory            4,000  

 Variable costs per unit:

   

    Direct materials                                     $ 220  

    Direct labor                                            $ 500  

    Variable manufacturing overhead       $ 59  

      Variable selling and administrative    $ 24  

 Fixed costs:    

      Fixed manufacturing overhead        $ 790,000  

      Fixed selling and administrative         $ 580,000  

1. Under absorption costing, all manufacturing costs (variable and fixed) are included in product costs.

Direct materials                                  $ 220  

 Direct labor                                       500  

 Variable manufacturing overhead       59  

 Fixed manufacturing overhead

    ($790,000 ÷ 13,000 units)             61  

Absorption costing unit product cost       $ 840  

Under variable costing, only the variable manufacturing costs are included in product costs.

Direct materials                              $ 220  

Direct labor                                  500  

Variable manufacturing overhead   59  

 

Hence, Variable costing unit product cost  $ 779.

Learn more about Company variable costing here:-brainly.com/question/6337340

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3 0
1 year ago
Thompson Corporation's unadjusted trial balance includes the following balances (assume normal balances):• Accounts receivable $
xz_007 [3.2K]

Answer:

$87.816

Explanation:

First you have to calculate the Oustanding receivables, that you can calculre with the next formula:

Oustanding receivables= Accounts recivable-  Allowance for doubtful accounts

Oustanding receivables=  1.492.000   -  28.400

Oustanding receivables=  1.463.600  

Now that you have the result have to multiply by the 6% to calculate the bad debt.

Bad debt = 1.463.600* 6%=  $87.816    

its the bad debt of   Thompson Corporation's

6 0
3 years ago
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