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In-s [12.5K]
3 years ago
14

First, think about the way in which interest on municipal bonds is treated from a federal income tax point view. In this light,

approximately what interest rate would a taxable bond have to offer to make its yield equivalent to that of a municipal bond that has an interest rate of 3.5% if a person in a 22% tax bracket?
Business
1 answer:
spin [16.1K]3 years ago
7 0

Answer:

4% (exactly 4.4%)

Explanation:

A taxable bond is a debt security whose return to the investor is subject to taxes at the local, state or federal level, or some combination thereof. An investor trying to decide whether to invest in a taxable bond or tax-exempt bond should consider what s/he will have left in income after taxes are taken.

Step 1:

Find the reciprocal of your tax rate,

(1-22%) = 1-0.22 = 0.78

Step two:

Divide this into the yield on the tax-free bond to find out the tax-equivalent yield.

3.5/0.78 = 4.4 ~ 4%

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he nation of Pecunia had a current account deficit of ​$ billion and a nonreserve financial account surplus of ​$ million in 201
Andrei [34K]

Answer: -$500,000,000

Explanation:

The Balance of payment is an account that shows the difference between the money coming into a country as a result of transactions with other nations and money going out for the same reason.

Given the figures in the question, the Balance of Payments is;

= Current Account balance + Nonreserve financial account balance

= -1,000,000,000 + 500,000,000

= -$500,000,000

4 0
4 years ago
Hudson Co. reports the contribution margin income statement for 2015. Assume sales remain constant at 10.000 units.HUDSON CO. Co
gizmo_the_mogwai [7]

Answer:

Results are below.

Explanation:

Giving the following information:

Selling price= $244

Unitary variable cost= 195 - 8= $187

Fixed costs= 327,600 + 37,000= $364,600

<u>We need to determine the new pre-tax income:</u>

Sales= 244*10,000= 2,440,000

Total variable cost= 187*10,000= (1,870,000)

Total contribution margin= 570,000

Fixed costs= (364,600)

Pre-tax income= 205,400

5 0
3 years ago
3.Which of the following is not a characteristic of a vertical organizational structure? A. Greater efficiency in handling uncom
Natasha_Volkova [10]

Answer:

  • <em><u>D. Consists of casual relationships and external office influences </u></em>

Explanation:

<em>Vertical organizational structures</em> consist is a very is a very hierarchical form of organization. And it has a typical pyramidal structure: few people on top and a wide base.

The rules emanate from top management and are transmitted down by each division, department, until they reach employees at the lower level of the company.

Indeed they are efficient because of they have clear rules to follow by the employees, that they can use to handle quickly most of daily tasks. Thus option <em>"A. Greater efficiency in handling uncomplicated tasks"</em> is true.

These kind of organizations may be little encouraging for the lower levels, as they just must follow the rules and are not able to implement new procedures by themselves. Thus, it is true that <em>"B. Lower employee morale and satisfaction"</em> may undermine the lowers levels and some good employess would migrate to other enterpises where they can develop their ideas. Thi si a clar disavantage.

<em> C. Slower communication </em>

Since the communication has to pass for all intermediate levels, these organizations have typically slower communiction. Thus, this is true too.

<em>D. Consists of casual relationships and external office influences </em>

This is not a characteristic of vertical organizational structures; on the contrary, the relationships are generally ruled by the same hierarchical formal relationships. This is, the command line is the same line of the relationships.

Nowadays, most enterprises are aware of the importance of developing a team bases on high morale and wide and good relationships, thus theses effects are handled by the top and medium level management searching to be more effective, encouraging, and satisfactory for all the employees.

8 0
3 years ago
Nozzle is a specially designed product that retro fits into your existing water faucet and atomizes the water stream in a spray
aleksandrvk [35]

Answer:

a discontinuous innovation

Explanation:

Please see attachment .

7 0
4 years ago
15) One year ago, you purchased 400 shares of Romy’s Roses stock at a price of $24.15 a share. The stock pays an annual dividend
alukav5142 [94]

Answer:

= $2,748

Explanation:

Number of shares purchased = 400

Price per share (a year ago)= $24.15

Total price paid a year ago = 400*$24.15 = <em>$9,660 </em>

Annual dividend per share = $1.82

Total dividend earned = 400 * $1.82 =<em> </em><em>$728</em>

Price per share (today)= $29.20

Proceeds from sale of shares today = 400*$29.20 = <em>$11,680</em>

Next, find total dollar return;

<em>Total dollar return</em><em> = </em>Total dividend earned + Proceeds from sale of shares today - Total price paid a year ago

= <em>$728+ $11,680 - $9,660 </em>

<em>= $2,748</em>

4 0
3 years ago
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