1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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.

You might be interested in
Which of the following best describes business impact analysis?
fgiga [73]
Sh
Zsymystsgmsggmsmssgmgs
7 0
4 years ago
Scobie Company began 2016 with a retained earnings balance of $142,400. During an examination of its accounting records on Decem
tino4ka555 [31]

The total retained earnings on 31st December 2016 is $197,100. The journal entry are attached below.

<h3>What is Retained Earnings?</h3>

Retained earning is basically the profits of the company which is kept aside to meet the future requirement of the company. It the amount which is left over after deducting all cost such as direct cost, indirect cost, income taxes and dividend.

The retained earning is used in the future projects or for buying the equipment for the company.

Learn more about retained earnings here:

brainly.com/question/14529006

#SPJ1

.

6 0
2 years ago
How you can get a job if you have no experience? Help me please​
tresset_1 [31]

Answer:

Subway hires inexperienced people just apply online and you should be called within a few days to start training immediately

8 0
3 years ago
Read 2 more answers
True/False
lara [203]

Answer:

the answer is True.

Explanation:

There are 2 traits in an effective market segment.

  1. It is internally homogeneous (potential customers in the same segment prefer the same product qualities ).
  2. It is externally heterogeneous. In other words, potential customers from different segments have different quality preferences. It responds consistently to a given market stimulus.
4 0
3 years ago
Sometimes entrepreneurs spend so much time and energy building the business that relationships are destroyed. What phrase best d
tekilochka [14]

Answer to this Question is

D) It's possible to score points in the wrong game.

Explanation:

Yes, its very much true that entrepreneurs build businesses from scratch, they build big empires by providing customers the most innovative products. They keep on finding the new solutions for the people's problems. Yes, while putting this handwork and changing the business and wold's landscape they put so much time, effort and energy that they get very less time for themselves that's why they cant give much time to their relationships and they have to loss them. That's why it is said that its just like scoring points in the wrong game.

5 0
4 years ago
Other questions:
  • If, at constant relative prices in a two-commodity and two-factor world, growth in a country’s labor force causes an expansion i
    12·2 answers
  • On July 1 the Fisher Shoe Store paid $24,000 to Acme Realty for 6 months rent beginning July 1. Prepaid Rent was increased for t
    6·1 answer
  • to earn as much interest as possible, you should open a savings account that earns _______ interest and has the ______ interest
    14·1 answer
  • You are told the column totals in a trial balance are not equal. After careful analysis, you discover only one error. Specifical
    13·1 answer
  • ______________ was a seventeenth- and eighteenth-century belief that a nation should try to sell more goods to other nations tha
    6·1 answer
  • According to the provisions of the _____, publically listed companies now must allow shareholders to vote on executive compensat
    11·1 answer
  • Which of the following situations would most likely encourage a firm's managers to make decisions that are in the best interests
    12·1 answer
  • sold inventory for $ 280 comma 000​, terms 4​/10, ​n/30. Cost of goods sold was $ 160 comma 000. How much sales revenue will Old
    13·1 answer
  • It's time to think like a manager. Corporate social responsibility is wonderful, though often criticized as purely rhetorical an
    12·1 answer
  • August 1 M. Harris, the owner, invested $8,000 cash and $34,400 of photography equipment in the company. August 2 The company pa
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!