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spayn [35]
3 years ago
15

ABC Systems located in Alabama expects a 9% after-tax rate of return on an equipment investment. The state tax rate is 6%. If th

e company is in the 34% federal tax bracket, estimate the before-tax rate of return required. Hint: Combined tax rate
Business
1 answer:
Molodets [167]3 years ago
5 0

Answer: 14.5%

Explanation:

The after tax return is calculated by the formula:

= Before tax return * (1 - federal tax) * (1 - State tax)

As we have the after tax return, we should work on the before tax:

9% = Before tax return * (1 - 34%) * (1 - 6%)

9% = Before tax return * 0.6204

Before tax return = 9% / 0.6204

= 14.5%

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Answer:

t value is 1.495

Explanation:

The null and alternative hypothesis are :

H0 : mu = 1327

ha: mu > 1327

This is a one tailed test

Critical value = 1.771

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test statistics:

s = 411.53, n = 14

t = (xbar -mu)/(s/sqrt9n))

= ( 1491.43 - 1327)/(411.53/sqrt(14))

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Decision:

Reject H0 if tstat > 1.771

Fail to reject H0

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3 years ago
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Answer:

Regional Production

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Juggernaut, Inc. can manufacture its bulk products by region, that way the distance to each selling point is less and the costs are lower.

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3 years ago
Overton Company has gathered the following information.
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Discuss the relationship between bond prices and interest rates. What impact do changing interest rates have on the price of lon
Doss [256]

Interest rates and bond prices have an adverse correlation. Bond prices grow during periods of low-interest rates and decline during periods of high-interest rates.

<h3>What is the interest rate?</h3>

The cost of borrowing and the rewards for saving are both indicated by the interest rate. Since there is a premium if the coupon rate is higher than the market rate, the bond's price will be higher. Bond prices will decrease if the coupon rate is lower because there will be a discount.

The price of long-term bonds is more affected by interest rates than the price of short-term bonds. A bond's price varies depending on how long it is.

Learn more about bond prices, here:

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2 years ago
El factor productivo naturaleza se considera originario debido a que??
yan [13]

Answer:

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Explanation:

6 0
3 years ago
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