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lyudmila [28]
3 years ago
13

ssume that John Richards pays income taxes at a 30 percent rate. He currently owns a not-for-profit (municipal) bond that pays 5

percent interest. What interest rate would have to be set on a for-profit (corporate) bond to produce the same amount of usable (after-tax) income
Business
1 answer:
Luden [163]3 years ago
4 0

Answer:

7.14%

Explanation:

Tax rate applicable for John Richards =30%. So, Post Tax profit for corporate bond will be 70% (1 - 30%) of profit.

Required post tax profit from Corporate Bond is 5%.

Required pretax profit from Corporate bond = 5%/70% = 0.071429 = 7.14%

Therefore, to get 5% post tax profit from corporate bond, the interest rate needs to be set on 7.14% to produce the same amount of usable (after-tax) income.

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tensa zangetsu [6.8K]

Answer:

In order to be <u>sustainable in the hospitality industry</u>, a company (restaurant) needs to implement the sustainability approach across more levels. The sustainable practices that differ Acorn House from non-sustainable restaurant are composting waste (minimizing actual waste), sourcing local ingredients (economically stimulating the region, while the carbon footprint of the ingredients is minimized) and investing in the training and development of their staff to learn the pillars of eco cuisine.

7 0
3 years ago
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Answer:

$0

Explanation:

Under the direct method of cost allocation, each and every service department cost would be distributed to the producing department that depend upon the square footage of space. Also the service of service department would be used by the other service department would not be considered.

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Hence, the $0 would be allocated  

4 0
3 years ago
Suppliers will keep raising prices in a certain market as long as _____.
denis-greek [22]
Suppliers will keep raising prices as long as there is excess demand, & quantity demanded exceeds the quantity supplied. Hopes this helps
5 0
4 years ago
Read 2 more answers
A consultant hired by your organization has advised your manager to increase his team's cohesiveness. he asks you, "what benefit
Natalija [7]

Answer:

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Explanation:

Remember, cohesiveness looks at the degree to which team members <em>stick</em> together in times of difficulties.

Also cohesive teams are good communicators; they would involve in regular interactions among team members, an attitude which when applied to an organisation setting would increase the team's productivity.

7 0
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Eduardwww [97]

Answer:

The question is incomplete, the options are missing. The options are the following:

A)  Total Quality Management

B)  Downsizing

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D)  Outsourcing

E)  Just-in-time

And the correct answer is the option C: Agile.

Explanation:

To begin with, the <em>"Agile Software Development"</em> is considered to be an approach when it comes to software devolpment and it focus on the devolpment of requirements and sollutions by the work of the whole team inside an organization and its consumers or users that will have a huge relationship in other to interact with the other group so that the client gets the best work as possible becuase of the great relationship between the parties. That is why that in the case presented, Hutch is using an Agile approach to interact directly with the consumers.

6 0
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