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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%

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3 years ago
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Answer:

$45,650

Explanation:

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b) A statement of changes in Retained Earnings is always prepared to include the net income available for distribution to stockholders and exclude the distributions already made to stockholders in the form of dividends before arriving at the ending balance of Retained Earnings.  This later figure is reported in the Balance Sheet.  This process is also part of the closing entries of temporary accounts to permanent accounts at the end of an accounting period.

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3 years ago
Suppose at the end of the meeting that Jack agrees to offer the restaurant buyout, including the non-competition agreement. Prio
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Answer:

D) Yes, as long as he actually communicates the revocation to Hal and Sophia (or their agent) prior to acceptance.

Explanation:

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Corporate Fund started the year with a net asset value of $14.00. By year-end, its NAV equaled $13.20. The fund paid year-end di
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Answer:

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