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
wlad13 [49]
3 years ago
10

A 50-year old customer is in a very low tax bracket. She lives in a state that has one of the highest income tax rates. The cust

omer is seeking income and preservation of capital. She has a 10 year investment time horizon. The best r
ecommendation would be a 10 year maturity:__________

a. Treasury Bond
b. investment grade corporate bond
c. investment grade municipal bond
d. Treasury STRIPS
Business
1 answer:
zvonat [6]3 years ago
3 0

Answer:

b. investment grade corporate bond

Explanation:

Credit rating is used to show the reliability of a security. The Investment Grade is a credit rating the is low risk bond. There is low possiblity of default on this type of investment.

Medium rating of A and BBB represent the investment grade corporate bond.

This is an attractive investment for the more conservative investor.

This is an ideal investment choice for the 50-year old customer with very low tax bracket, in a state with high income tax rates. So she is seeking income and preservation of capital.

You might be interested in
Old Quartz Gold Mining Company is expected to pay a dividend of $8 in the coming year. Dividends are expected to decline at the
LenKa [72]

Answer:

$133.33

Explanation:

Calculation for The intrinsic value of the stock

Intrinsic value of the stock = 6% + [−0.25(14% − 6%)] = .04

Intrinsic value of the stock = 8/[.04 − (−.02)]

Intrinsic value of the stock = 8/.06

Intrinsic value of the stock = $133.33

Therefore the intrinsic value of the stock is $133.33

8 0
3 years ago
Blue Ridge Bicycles uses a standard part in the manufacture of several of its bikes. The cost of producing 43,000 parts is $140,
kifflom [539]

Answer:

$71,000

Explanation:

The computation of operating income is shown below:-

Total costs if company bought = Cost of production × Outside supplier per unit) + (Fixed cost × Remaining percentage)

= (43,000 × $3.80) + ($68,000 × (100% - 30%))

= (43,000 × $3.80) + ($68,000 × 70%)

= $163,400 + $47,600

= $211,000

Loss in Income if part is bought = Total costs if company bought - Total costs originally

= $211,000 - $140,000

= $71,000

Therefore, Making profit will be more by $71,000 and for computing the Loss in Income if part is bought we simply applied the above formula.

8 0
3 years ago
June Corp. sells one product and uses a perpetual inventory system. The beginning inventory consisted of 80 units that cost $20
inn [45]

Answer: 200 units

Explanation:

Beginning inventory                                      80 units.

Company Purchases                                     <u>480 units</u>

Total                                                                560 units

Sales                                                               <u>(360 units)</u>

Ending Inventory                                            200 units

200 units remain in Ending inventory.

7 0
3 years ago
When Eleanor went to Letty's department store, she noticed that the price that rang up when she was billing was much higher than
Sunny_sXe [5.5K]

Answer: stability

             

Explanation: In simple words ,The probability that the origin of the attribution would change over a duration of time is called attribution. For instance, if a person decides to get such a big promotion, they might equate it to a lack of skill.

This suggests uncertainty, as the person must improve their skills and obtain an education in order to ultimately influence the outcome. It is not a sustainable situation, but one that can be modified by behavioral change.

Thus, from the above we can conclude that the correct option is D.

5 0
4 years ago
Small businesses that are just getting off the ground often have problems with the difference between cash coming into the busin
Hatshy [7]

Answer: cash flow

Explanation:

Cash flow refers to the net amount of cash and cash equivalents which is being transferred into and out of a business.

The cash flow is an important financial statement of any business. It's vital for all businesses to keep a watch on their cash flows. This is vital in knowing if the business is making a profit or loss.

5 0
3 years ago
Other questions:
  • IBM and several other computer manufacturers actually became household words when they designed equipment to benefit _____.
    10·1 answer
  • The city wants to pave the road in front of Sam Smith's house. Sam has 110 front feet. The cost to pave is $35 a linear foot and
    6·1 answer
  • Which of the following statements is true if a​ bond's stated interest rate is higher than the market​ rate?
    12·1 answer
  • 6. On 3/1/19, Kepple Inc. borrowed funds on a 12%, two-year note, to finance the construction of a new warehouse which qualifies
    7·1 answer
  • According to Keynesian theory, which of the following is not true at each short-term macro equilibrium?
    7·1 answer
  • How did the shift to steam power lead to the growth of cities?
    10·1 answer
  • The break even income would be level
    15·1 answer
  • At year end, Tangshan China Company balance sheet showed total assets of $60 million, total liabilities (including preferred sto
    11·1 answer
  • Preferred Stock As of December 31, 2015, we had one class of preferred stock outstanding. We are authorized to issue approximate
    15·1 answer
  • On January 2, 2021, the Jackson Company purchased equipment to be used in its manufacturing process. The equipment has an estima
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!