Answer:
The return from the bond is 5% per year before tax. And the tax is 32%.
After tax rate of return = Interest rate * (1-tax rate)
= 5% * (1-32%)
= 0.05 * 0.68
= 0.034
= 3.4%
Thus, the after tax of return from the bond is 3.4%
The interest of the taxable income corporate bond is taxed annually. Hence, the change in the investment maturity period would not affect the after tax rate of return from bond. The annual after tax rate of bond would not change irrespective of the investment maturity period. The after tax rate of return of corporate bonds would be the same 3.4% even in the case of 10 years maturity period.
Answer:
a. $2,465.82
b. $3,539.68
c. Yes, we should
Explanation:
Annual cost to maintain old forklift is $5,000
Equivalent Annual Cost (EAC) of new forklift = (Asset price x discount rate)/(1-(1+discount rate)-n), in which n is the number of year for usage of this forklift?
If discount rate is 4% per year, the EAC of new forklift is $2,465.82
= ($20,000x4%)/(1-(1+4%)-10)
If discount rate is 12% per year, the EAC of new forklift is $3,539.68
= ($20,000x12%)/(1-(1+12%)-10)
We should replace because with such above discount rate, the old forklift is more costly than the new one
Answer:
Administered vertical
Explanation:
In an administered vertical marketing system, leadership over production and distribution is assumed through the size and power of one or a few dominant channel members.
Administered Vertical Marketing System is a coordinated distribution channel in which the flow of the products from the production to the end point is controlled by one member. The authority of that member is defined by the size of the channel system instead of contractual ties.
Answer:
The correct answer is B. Agreements.
Explanation:
Agreement is, in Law, the decision taken jointly by two or more persons, or by a board, assembly or court. It is also called a pact, treaty, agreement, convention or resolution taken within an institution (any type of organization or company, public or private, national and international).
It is, therefore, the manifestation of a convergence of wills (decision by consensus) in order to produce legal effects. The main legal effect of the agreement is its obligation for the parties that grant it (Pacta sunt servanda) being born for the same obligations and rights (bilateral or synalagmatic contract), all to the extent provided by applicable law.
The legal validity of an agreement requires that the consent of the grantors is valid and its purpose is true and determined, not out of trade or impossible. Regarding the form of its celebration, oral or written, laws usually require certain formalities that depend on the nature of the obligations agreed upon.
