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Leya [2.2K]
3 years ago
14

)An investor is trying to decide between a muni paying 5.75 percent or an equivalent taxablecorporate paying 8.25 percent. What

is the minimum marginal tax rate the investor must have toconsider buying the municipal bond
Business
1 answer:
In-s [12.5K]3 years ago
4 0

Answer: 30.3%

Explanation:

Because taxes are not paid on municipal bond interest, their interest rates are usually lower with the difference accounting for the taxes paid.

For a municipal bond to be similar to a corporate bond, the tax rate must be such that it makes them equal:

Municipal bond return = Corporate bond return * (1  - tax rate)

5.75% = 8.25% * (1 - tax)

1 - tax rate = 5.75% / 8.25%

1 = 0.6969697 + Tax rate

Tax rate = 1 - 0.6969697

= 30.3%

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Masja [62]

________________________________

<h3>= 25% × $1,400,000 ÷ 100</h3><h3>= <u>$350,000</u></h3>

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4 0
3 years ago
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What is economics, and how are the three sectors of the economy linked?
marysya [2.9K]

Answer:

This is a part of my Economic Resources doc and I'm not sure about the second part of the question but I hope it helps!

Explanation:

Economic Resources

For a firm (producer) to make any product, it needs to use ECONOMIC RESOURCES. These are INPUTS to be used together or combined efficiently to produce goods/services.

What you need to know:

What is a PRODUCER?

a person, franchise, brand or country etc. that makes, grows, or produces goods and services for sale to customers or consumers.

What is a RESOURCE?

a stock or supply of goods, materials, and products that can be bought  by a person or organization in order to function effectively.

What is an ECONOMIC resource?

Natural supplies that can be used to make a product. It is important for the success of the company.

Classification of Economic Resources:

Natural resources (LAND)

Natural resources are ones who are not man made and are there naturally. This could be land, light, water, electricity, etc.

Human resources (LABOUR)

Capital resources (CAPITAL)

Entrepreneurship (ENTERPRISE)

3 0
2 years ago
Why is it important to include industry terminology in a résumé? How can you find industry terminology?
xxTIMURxx [149]
<span>The industry terms which you are looking for will be considered keywords for your resume. One of the best ways to get noticed in the field is to include your resume on job search databases, where recruiters can search for individuals who may fill a position which they have open. In order for your resume to get noticed, it will need to come up in a search which is conducted by those recruiters on those sites. How will those recruiters find your resume? They will search for particular job and industry related terms which appear in any of the resumes. If your resume includes those terms, you will be sure to pop up in their results list.</span>
4 0
3 years ago
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Which best describes a way people can use personal loans? to buy a house to buy a car to pay for college to pay for groceries.
Bas_tet [7]

The best way people can use their Personal loans is to buy or pay for groceries. As there are other separate loans for the things like car, home and pay for college.  

<h3>what is a personal loan?</h3>

A loan is issued for non-essential purposes, usually to a person with a good credit score who is not required to submit collateral to back up the loan.

A personal loan can be utilized for practically any reason, including settling credit card debt, home upgrades, and large purchases.

Thus option D is correct.

For further details about the personal loan refer to this link:

brainly.com/question/19106746

4 0
2 years ago
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Weaver Corporation had the following stock issued and outstanding at January 1, Year 1:
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Answer:

Preferred shareholder (7,500*$100)*7%   $52,500

Common shareholder (70,000×$2)          <u>$140,000</u>

Total dividend                                            <u>$192,500</u>

<u />

Date         General Journal                  Debit         Credit

10 June     Dividend                            $192,500

                        To dividend payable                      $192,500

                 (To record dividends payable)

20 June    No entry required

01 July       Dividend payable              $192,500

                         To cash                                           $192,500

                  (To record dividend payment)  

31 Dec      Retained earning               $192,500

                         To dividends                                   $192,500

                (To close dividend account)

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2 years ago
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