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GaryK [48]
3 years ago
10

Suppose you want to invest $10,000. You have two options: Option #1: Invest in municipal bonds with an expected return of 8.00%,

or Option #2: Invest in the corporate bonds of Jefferson & Alexander Inc. which are offering an expected return of 10.00% Assume that your decision is based solely on your tax situation. If everything else is the same for both bonds, at what tax rate would you be indifferent between these two bond investments?
Business
1 answer:
Katyanochek1 [597]3 years ago
8 0

Answer: 20%

Explanation:

Municipal Bonds are generally not taxed so if you invest in the Municipal bond, the tax rate does not affect you.

The tax rate therefore that will make you indifferent between the 2 options is the one that will take the Corporate bond returns of Jefferson to 8% so that both bonds may give you the same return after tax.

Assuming that tax rate is 'x' then,

8 = 10 (1 - x)

8 = 10 - 10x

10x = 10 - 8

10x = 2

x = 20%

At a tax rate of 20%, the Corporate bonds give an 8% return.

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Pooler Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.15 direct labor
AleksandrR [38]

Answer:

$13,335

Explanation:

Required production in units for April and May are 6,500 units and 6,200 units respectively.

Direct labor hours needed is 0.15 for both months.

Total direct labor hours needed for each month would be;

April

= 6,500 units × 0.15

= 975

May

=6,200 units × 0.15

= 930

Direct labor rate per hour for each months is $7

Total direct labor cost for April would be;

= $7 × 975

= $6,825

Total direct labor cost for May would be;

= $7 × 930

= $6,510

Therefore, total direct labor cost for both months April and May would be;

= $6,825 + $6,510

= $13,335

4 0
3 years ago
Steak Company acquired a building valued at $170,000 for property tax purposes in exchange for 10,000 shares of its $5 par commo
Yuliya22 [10]

Answer:

$160,000

Explanation:

Data provided in the question:

Value of the building acquired = $170,000

Number of shares exchanged = 10,000

Selling price of the stocks = $16 per share

Now,

The amount for which the building will be recorded by Steak Company is the market value of the shares that has been exchanges to acquire the building.

Therefore,

The amount for which the building will be recorded by Steak Company

= Number of shares exchanged × Selling price of the stocks

= 10,000 × $16

= $160,000

3 0
3 years ago
The typical goal used when developing a process-oriented layout strategy is to: minimize the distance between adjacent departmen
Georgia [21]

Answer:

minimize the material handling costs.

Explanation:

A process-oriented layout is a strategic method or technique used by manufacturing companies to organize and develop their work areas (factories) based on the processes and activities being performed at each factory rather than on the product being manufactured.

Hence, the typical goal used when developing a process-oriented layout strategy is to minimize the material handling costs for each factory.

Process costing can be defined as a cost accounting method used for assigning manufacturing or production costs to the units of goods produced by a business firm over a specific period of time. It is mostly used by firms that produce a large quantity of homogeneous or similar products on a continuous basis. Process costing typically uses more than one Work in Process Inventory account because costing at each stage of production or manufacturing process.

6 0
3 years ago
The scores you receive on the ACCUPLACER tests determine what?
antoniya [11.8K]
It determines wether or not you are ready for college-level studies or if  you'll need a few more preparatory classes.
3 0
3 years ago
Read 2 more answers
Large membranous sacs are more prevalent in plant cells and some protozoa than in animal cells. These sacs in plant cells might
Olenka [21]

Answer:

Vacoule

Explanation:

vacuole can be regarded as membrane-bound organelle. They can be found in cell of fungi as well as plant, I could also be found in some of the bacteria and protist cell.Those that are found in animal cell do sequester waste products in the cell, and those in plant cell helps in maintaining water balance. In plant cell, just single vacoule could take up so much space.It should be noted that Large membranous sacs are more prevalent in plant cells and some protozoa than in animal cells. These sacs in plant cells might function in vacoule.

4 0
3 years ago
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