Answer:
C) 4.50 percent
Explanation:
It is given that :
Interest a corporate bond pays = 6.25 percent
The marginal percent tax bracket is given as : 28 %
We have to find the amount that the municipality bond shall pay to be the equivalent to the amount after the tax basis :
We known that the municipal bond is tax exempted after the corporate tax bond should be equal to the municipal bond to be indifferent.
Thus, rate of return = rate of return after tax = rate x (1 - tax rate)
= 6.25 % x (1 - 0.28)
= 4.50 %
Therefore the answer is = 4.50 %
Answer:
A
Explanation:
IPO , a synonym for initial public offering is a process of offering to the public new stock issuance through an underwriter.
IPO comes with a lot of benefit , nevertheless financial economist have some concern about it .
Of all the options given in the question , the long run of a new public company , (three to five years from the date of issue) being superior to the overall market returns is the only exception
Answer:
Interest earn= $80.14
Explanation:
Giving the following information:
PV= $1,000
i= 7%
n= 3
<u>First, we will calculate the future value at the second year:</u>
FV= PV*(1+i)^n
FV= 1,000*(1.07^2)
FV= 1,144.9
<u>Now, for the third year:</u>
FV= 1,144.9*1.07= 1,225.04
Interest earn= 1,225.04 - 1,144.9= $80.14
Answer:
The correct answer is A. Brazilian tomato producers are worse off.
Explanation:
A country has a comparative advantage in producing a good and service if its opportunity cost of producing that good and service is lower than that of its trading partner. So it is better off for a country that has a lower opportunity cost in production a good or service to specialise in that good or service.
Brazil has a comparative advantage in coffee production, meaning, it is better off in specialising in the production of coffee and will be worse off if Brazil specialises in Tomato
Mexico has a comparative advantage is Tomato, meaning, she is better off in specialising in Tomato and worse off if she specialises in Coffee
