Answer:
The interest rate on corporate bond is 7.87 percent.
Explanation:
The yield on 7-year municipal bond = 4.8%
Given marginal tax rate = 39 percent
Now calculate the interest rate on 7 year corporate bond that has equal risk.
Use the below formula. Here, yield from both type of bond is equated that is yield from corporate bond and yield from municipal bond because it is given that both gives same return after tax.
Interest rate on corporate bond × (1-tax rate) = Municipal bond yield
Interest rate on corporate bond × (1- 0.39) = 4.8
A company would trace direct-material cost to each product produced and use a predetermined application rate for conversion cost.
Explanation:
In this operation costing system the cost of the operation and the process cost are in parallel with the conversion cost and when when a company uses this they trace the direct material cost to each of the product produced and they predetermine the application rate of the conversion cost
The raw materials are manufactured in one way and the individual products are manufactured in another way and hence there is a mix of both the jobs and the prices may vary. Hence to avoid this confusion operation costing system was introduced
Answer:
24%
Explanation:
Calculation to determine their housing ratio
Using this formula
Housing ratio= Housing expenses / Gross monthly income
Let plug in the formula
Housing ratio= $2,700/ $11,300
Housing ratio= 24%
Therefore their housing ratio is 24%
Answer:
Sept 6. DR Inventory (80 * 20) 1,600
CR Accounts Payable $1,600
Sept 9. DR Inventory 80
CR Cash 80
Sept 10. DR Accounts Payable 63
CR Inventory 63
Sept 12. DR Accounts Receivable (26 * 31) 806
CR Sales Revenue 806
DR Cost of Goods Sold (21 * 26) 546
CR Inventory 546
Sept 14. DR Sales Returns and Allowances 31
CR Accounts Receivable 31
DR Inventory 21
CR Cost of Goods Sold 21
Sept. 20 DR Accounts Receivable (30 * 32) 960
CR Sales Revenue 960
DR Cost of Goods Sold (30 * 21) 630
CR Inventory 630
Which of the following is true?
b.
net cash flow + cash outflow = cash inflow
Total Cash Inflow is basically Cash Reciepts, Cash inflow from Sale of Assets and the like. Cash Outflow refers to Expenses paid, Assets purchased etc. Net Cash flow is basically the difference between Cash Inflow and Cash Outflow, It could be negative if outflow is more than inflow and positive if inflow is more than outflow.
Observing the above explanation, B Seems like the correct Option.
