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
jok3333 [9.3K]
3 years ago
6

An investor is in the 28 percent federal tax bracket and pays a 9 percent state tax rate and 4 percent in local income taxes. Fo

r this investor a municipal bond paying 6 percent interest is equivalent to a corporate bond paying ________ interest.
Business
1 answer:
Crazy boy [7]3 years ago
8 0

Answer:

Corporate bond pay = 10.169%

Explanation:

Given:

Federal tax = 28%

State tax = 9%

Local income tax = 4%

Municipal bond pay = 6% = 0.06

Corporate bond pay = ?

Computation of Corporate bond pay :

Total taxes rate = 28% + 9% + 4%

Total taxes rate = 41%  = 0.41

Corporate bond pay = Municipal bond pay / (1-total tax rate)

Corporate bond pay = 0.06 / (1-0.41)

Corporate bond pay = 0.06 / (.59)

Corporate bond pay = 0.10169

Corporate bond pay = 10.169%

You might be interested in
If local shell gasoline stations look at bp stations' prices as the primary method of determining its own prices, shell is using
djyliett [7]
<span>If local shell gasoline stations look at bp stations' prices as the primary method of determining its own prices, shell is using</span> competition-based pricing.
In this we considers costs have not much value and consider to be less important than competitor's prices, means competitor's price is important.
4 0
3 years ago
Material 1 costs $7 a pound, material 2 costs $5 a pound, and labor costs $15 per hour. Product A sells for $101 a unit, product
Umnica [9.8K]

Answer:

Some answers are attached below

Explanation:

We need to maximize profit -

Selling prices for A,B,C are given; Costs of materials 1,2 and labor are given.

Also given is that 1 unit of each product A,B,C requires certain units of material 1, material 2 and labor based on the table provided.

Profit for 1 unit of A = Selling Price - Cost = 101 - [(7*3)+(5*2)+(15*4)] = 10 $

Profit for 1 unit of B = Selling Price - Cost = 67 - [(7*1)+(5*4)+(15*2)] = 10 $

Profit for 1 unit of C = Selling Price - Cost = 97.5 - [(7*5)+(5*0)+(15*3.5)] = 10 $

LP Formulation

Maximize profit Z = 10A+10B+10C

subject to Constraints

3A+B+5C<=300 ----> Material 1 constraint

2A+4B<=400 ---->Material 2 constraint

4A+2B+3.5C <=200 ----->Labor

C>=10 -----> Product C Demand constraint

A,B,C>=0

Below is the solver solution and formulation table from Excel -

Maximum profit = 925 $

8 0
3 years ago
What type of documents do you see in the given image? The given image shows .
NeTakaya

Answer: business report

Explanation:

6 0
2 years ago
What is the name of the process that weighs the alternatives, gathers all necessary information, and can ultimately lead you to
DiKsa [7]
This process is known as decision making.
6 0
3 years ago
Joseph wants to take out a large loan. He has always paid his bills on time and has a fantastic credit score. He has been with h
oksano4ka [1.4K]

Joseph is probably denied credit due to his bad character, which is an essential element of the Three C's of Credit.

<h3>What are the Three C's of Credit?</h3>

To determine the credibility of a person for grant of a loan or an advance, a lender takes into consideration the Three C's of credit, which are as follows,

  1. Character
  2. Capacity
  3. Capital or Collateral.

Collaterals or Capital help in determination of security of lender from borrower, in case when the borrower is unable to repay the credit. Capacity determines the ability to repay the credit.

Character, on the other hand, helps in determination whether the customer or the borrower's behavior, and the qualities of his or her character in the society.

Hence, the three C's of credit are explained above.

Learn more about the Three C's of Credit here:

brainly.com/question/8743350

#SPJ1

7 0
2 years ago
Other questions:
  • When the state of montana runs an advertising campaign inviting the public to visit "big sky country," it's an example of ______
    13·1 answer
  • A company wants to persuade a customer to buy its products. if the consumer is characterized as having a high degree of involvem
    9·1 answer
  • Garcia Company reports the following information: Net operating income after taxes $100,000 Before-tax operating income $300,000
    8·1 answer
  • Jaslyn saw a dress she liked in her favorite department store a month ago. At that time the dress was on sale for 50% off. Jasly
    13·2 answers
  • Kelsie told you her goal is to be one of the best overall programmers in the world. She​ doesn't care who she works​ for, or wha
    9·1 answer
  • suppose dave's discount merchandise inventory account showed a balance of 8000 before the year end adjustments. The physical cou
    13·1 answer
  • First, think about the way in which interest on municipal bonds is treated from a federal income tax point view. In this light,
    14·1 answer
  • The primary purpose of measuring the overall level of prices in the economy is to
    5·1 answer
  • 2. Are grants renewable, Do you need to complete a FAFSA in order to be eligible for need-based grants?
    12·1 answer
  • Reviewing and evaluating records used to prepare a company's financial statements is referred to as ______.
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!