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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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When resources are scarce, power differences across subunits are _________; when resources are plentiful, subunit power differen
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Answer:

The correct answer is letter "A": magnified, reduced.

Explanation:

Scarcity does not only represent individuals having to sacrifice some of their needs to fulfill others because resources are limited. Scarcity can also represent the reason for dispute between social levels. When resources are scarce and one social stratum has more access to it, differences will increase. The opposite happens when the resources are allocated properly between them: differences are likely to be reduced.

4 0
3 years ago
A real estate agent is considering changing her land line phone plan. There are three plans to choose from, all of which involve
Yakvenalex [24]

Answer:

PLAN A:

(120 * 0.39) + (40 * 0.19) + 20 = $74.40

PLAN B:

(120 * 0.49) + (40 * 0.14) + 20 = $84.40

PLAN C:

$20 + $75 = $95 ;

PLAN A is optimal from 0 to 192 minutes

PLAN C is optimal from 192 minutes onward ;

Explanation:

PLAN A :

Service charge = $20

Daytime = $0.39 per minute

Evening = $0.19 per minute

PLAN B :

Service charge = $20

Daytime = $0.49 per minute

Evening = $0.14 per minute

PLAN C :

Service charge = $20

225 minutes = $75

Minutes beyond 225 = $0.36 per minute

A.)

Determine the total charge under each plan for this case: 120 minutes of day calls and 40 minutes of evening calls in a month.

PLAN A:

(120 * 0.39) + (40 * 0.19) + 20 = $74.40

PLAN B:

(120 * 0.49) + (40 * 0.14) + 20 = $84.40

PLAN C:

$20 + $75 = $95

b. If the agent will use the service for daytime calls, over what range of call minutes will each plan be optimal?

PLAN A:

20 + 0.39D = 95

0.39D = 95 - 20

D = 75 / 0.39

D = 192.31

5 0
3 years ago
Does being unemployed apply to someone who has never been employed
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Yes, because the definiton of unemployed is doesn't have  job but is ready to work
5 0
3 years ago
True or false? one of the most common reasons for stopping an exercise training program is injury.
Mama L [17]
Truth cause it may do to doing the activity wrong..or body ain’t conditioned right for it
3 0
3 years ago
Read 2 more answers
Financial statements are prepared: Group of answer choices For corporations, but not for sole proprietorships or partnerships. P
telo118 [61]

Answer:

Primarily for the benefit of persons outside of the business organization.

Explanation:

Financial accounting is an accounting technique used for analyzing, summarizing and reporting of financial transactions like sales costs, purchase costs, account payables and receivables of an organization using standard financial guidelines such as Generally Accepted Accounting Principles (GAAP) and financial accounting standards board (FASB). The financial accounting standards board (FASB) is a private, non-profit organization saddled with the responsibility of establishing and maintaining standard financial accounting and reporting for general guidance of individuals such as investors, issuers and auditors.

Financial reporting can be defined as the formal communication or disclosure of financial information and statements to present and potential users such as investors and creditors.

Financial statements can be defined as a document used for the formal communication or disclosure of financial information and statements to present and potential users such as investors and creditors. Thus, it includes balance sheet, statement of retained earnings and income statement. The information that are found in a financial statement are revenues, expenses, liability, equity and assets.

Hence, the primary objective of financial accounting is to provide accounting information for external users so as to enable them have a good understanding of the financial inclination of a business firm and thus, make an informed decision whether or not to invest in the business firm.

In Accounting, the external users of a financial accounting information includes customers, creditors, investors shareholders and government regulators.

8 0
2 years ago
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