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Anna71 [15]
3 years ago
5

A corporate bond pays 6.25 percent interest. How much would a municipal bond have to pay to be equivalent to this on an after ta

x basis if you are in the 28 marginal percent tax bracket?A) 7.82 percentB) 5.79 percentC) 4.50 percentD) 7.26 percentE) 8.38 percent
Business
1 answer:
garri49 [273]3 years ago
5 0

Answer:

C) 4.50 percent

Explanation:

It is given that :

Interest a corporate bond pays = 6.25 percent

The marginal percent tax bracket is given as : 28 %

We have to find the amount that the municipality bond shall pay to be the equivalent to the amount after the tax basis :

We known that the municipal bond is tax exempted after the corporate tax bond should be equal to the municipal bond to be indifferent.

Thus, rate of return = rate of return after tax = rate x (1 - tax rate)

                                                                         = 6.25 % x (1 - 0.28)

                                                                         = 4.50 %

Therefore the answer is   = 4.50 %

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Carlos needs to combine words in a First Name and a Last Name column. Which of the following functions should he use
pantera1 [17]

Answer:

with space: =A2&" "&B2

without space: =CONCATENATE(A2,B2)

Explanation:

When using Microsoft Excel the function that you would want to use would be the following

=A2&" "&B2

In this function, you will be combining the text in cell A2 and B2 with a space in the middle, you can change to the cells that you want and simply add &" "& in between them to combine them with a space.

If you simply want to combine the words with no space in between them you can use the concantenate function which combines words in two cells into one but without space.

=CONCATENATE(A2,B2)

4 0
3 years ago
under a - or lump-sum, agreement, the contractor agrees to perform all work specified in the contract at a known cost.
Alexxx [7]

A "stipulated sum contract," commonly referred to as a lump sum contract, is a construction contract where the contractor consents to finish the project for a predefined, fixed amount.

<h3>What its means contract?</h3>

The simplest definition of something like a contract is a commitment that is legally binding. The commitment could be to carry out or abstain from a certain action. A contract must be made by two or more parties who must agree to it, with one of them typically presenting an offer and the other accepting it.

<h3>What are contracts in law?</h3>

A contract is an agreement that is legally binding; I A contract is an agreement that is legally binding at one or both of the parties' discretion but not at the discretion of the other party or parties.

To know more about contract visit:

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7 0
1 year ago
Question 1-12
storchak [24]

The change that would encourage GDP growth to slow is the automobile industry reduces hours for factory workers.

<h3>What would cause GDP growth to slow?</h3>

Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year

If the hours of work for factory workers is reduced, output would be reduced and this would slow GDP growth.

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5 0
1 year ago
You have $106,000 to invest in a portfolio containing Stock X and Stock Y. Your goal is to create a portfolio that has an expect
Helga [31]

Answer:  ER(P) = ERX(WX) + ERY(WY)

                   16 = 13(1-WY)  + 9(WY)

                    16 = 13 - 13WY + 9WY

                    16 = 13 - 4WY

                   4WY = 13-16

                   4WY = -3

                     WY = -3/4

                     WY = -0.75

                     WX = 1 - WY

                     WX = 1 - (-0.75)

                     WX = 1 + 0.75

                     WX = 1.75

 The amount to be invested in stock Y = -0.75 x $106,000

                                                                    = -$79,500

The Beta of the portfolio could be calculated using the formula:

                     BP = BX(WX) + BY(WY)

                     BP = 1.14(1.75) + 0.84(-0.75)

                     BP = 1.995 - 0.63

                     BP = 1.365

Explanation: The expected return of the portfolio is equal to expected return of stock X multiplied by the weight of stock X plus the expected return of stock Y multiplied by weight of security Y. The weight of security Y is -0.75. The weight of security X is equal to 1 - weight of security Y. Thus, the weight of security X is 1.75 since the weight of security Y is negative. The amount to be invested in security Y is -0.75 x $106,000, which is equal to -$79,500

The Beta of the portfolio equals Beta of stock X multiplied by weight of stock X plus the Beta of stock Y multiplied by weight of stock Y. The weights of the two stocks have been obtained earlier. Therefore, the Beta of the portfolio is 1.365.

6 0
3 years ago
Speedster Bicycles, Inc., collects 25% of its sales on account in the month of the sale and 75% in the month following the sale.
elixir [45]

Answer:

Total cash collection= $257,500

Explanation:

Giving the following information:

Sales:

March= $250,000

April= $280,000

Speedster Bicycles, Inc., collects 25% of its sales on account in the month of the sale and 75% in the month following the sale.

<u>Cash collection April:</u>

Sales on account from April= 280,000*0.25= 70,000

Sales on account from March= 250,000*0.75= 187,500

Total cash collection= $257,500

8 0
3 years ago
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