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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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Answer:

d. Hexagon Inc. cannot be challenged in a court even when it fails to follow up on its promises.

5 0
3 years ago
Aquilera, Inc., has sales of $19.6 million, total assets of $14.6 million, and total debt of $5.4 million. The profit margin is
Gnom [1K]

Answer:

a. $1,764,000.00

b. 12.08%

c. 19.17%

Explanation:

a. What is the company's net income?

Profit margin = Net income ÷ Sales

Therefore, we have:

9% = Net income ÷ $19,600,000

Net income = $19,600,000 × 9% = $1,764,000.00  

Therefore, the net income of Aquilera, Inc. is $1,764,000.00

b. What is the company's Return on Assets (ROA)?

ROA = Net income ÷ Total Assets

ROA = $1,764,000 ÷ $14,600,000 =  0.120821917808219 = 12.08%

Therefore, the ROA of Aquilera, Inc. is 12.08%

c. What is the company's Return on Equity (ROE)?

Total Assets = Total Debt + Total Equity

Therefore,

Total Equity = Total Assets - Total Debt

Total Equity = $14,600,000 - $5,400,000 = $9,200,000

ROE = Net income ÷ Total Equity

ROE = $1,764,000 ÷ $9,200,000 = 0.191739130434783 = 19.17%

Therefore, the ROE of Aquilera, Inc. is 19.17%

5 0
3 years ago
Asbestos is commonly found in buildings and structures built before what year ?
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E To prevent dumping

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Also, placing embargo on the importation of goods that are produced locally in a country would take away the possibility of making the country for dumping ground in terms of goods that are not up to standard, produced in a foreign country and same would have been imported.

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3 years ago
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