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Marianna [84]
3 years ago
9

A taxable bond has a yield of 8%, and a municipal bond has a yield of 6%. At what tax bracket, would you be indifferent between

the 2 bonds
Business
1 answer:
Nataliya [291]3 years ago
4 0

Answer: 25%

Explanation:

Municipal bonds are tax-free which means that the tax bracket that would make you indifferent between the 2 bonds would be the one that brings the after-tax yield on the taxable bond to the same yield as the Municipal bond.

Assume this tax rate to be x.

8% * ( 1 - x) = 6%

8% - 0.08x = 6%

0.08x = 8% - 6%

x = (8% - 6%) / 0.08

x = 25%

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Painter Corporation was organized by five individuals on January 1 of the current year. At the end of January of the current yea
love history [14]

Answer:

Painter Corporation

Income Statement

For the month ended January, 202x

Total revenues   $299,000

<u>Total expenses  ($192,000)</u>

EBIT                      $107,000

<u>Income taxes       ($33,200)</u>

Net income           $73,800

Painter Corporation

Balance Sheet

For the month ended January, 202x

Assets:

Cash $66,950

Accounts receivables $33,200

Merchandise inventory $95,700

Total assets                                                          $195,850

Liabilities:

Accounts payable $27,350

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Retained earnings $73,800

Total stockholders' equity $168,500

Liabilities + stockholders' equity                           $195,850

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3 years ago
HURRY NEED ANSWER ASAP which feature of a GUI browser allows you to list URL's that you use often
zlopas [31]
Bookmarks is the answer
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3 years ago
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Inflation risk is the prospect of
Serga [27]
Inflation reducing the value of investors' financial assets  I think its that i'm not sure
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3 years ago
Trendy Toes produces sports socks. The company has fixed expenses of $85,000 and variable expenses of $1.20 per package. Each pa
harina [27]

Answer:

Results are below.

Explanation:

<u>To calculate the contribution margin and contribution margin ratio we need to use the following formulas:</u>

contribution margin= selling price - unitary variable cost

contribution margin= 2 - 1.2= 0.8

contribution margin ratio= contribution margin / selling price

contribution margin ratio= 0.8 / 2

contribution margin ratio= 0.4

<u>Now, we can calculate the break-even point in units and dollars:</u>

Break-even point in units= fixed costs/ contribution margin per unit

Break-even point in units= 85,000 / 0.8

Break-even point in units= 106,250

Break-even point (dollars)= fixed costs/ contribution margin ratio

Break-even point (dollars)= 85,000 / 0.4

Break-even point (dollars)= $212,500

<u>Finally, the desired profit is $26,000:</u>

Break-even point in units= (fixed costs + desired profit) / contribution margin per unit

Break-even point in units= 111,000 / 0.8

Break-even point in units= 138,750

4 0
3 years ago
Approximately how large is the federal debt per capita
jeyben [28]
The current US national debt stands at about $20.4 trillion, or roughly 2.04\times10^{13} dollars. For comparison, the US population is currently around 323 million people, or 3.23 \times 10^{8} people.

To find the amount of that debt each citizen shoulders, we can divide the two:

\frac{2.04\times10^{13}}{3.23\times10^{8}} \\\\ = \frac{2.04}{3.23}\times 10^{5}

Dividing 2.04 by 3.23 gets us approximately 0.632, so the total debt of each citizen would be about

0.632\times10^{5}=0.632\times100,000=6320

So, the US has a per capita federal debt of roughly $63200
8 0
3 years ago
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