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
Lunna [17]
3 years ago
11

Assume you are in the 35 percent tax bracket and purchase a municipal bond with a yield of 5.50 percent. Use the formula present

ed in chapter 11 of your textbook to calculate the taxable equivalent yield for this investment. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
Business
1 answer:
Debora [2.8K]3 years ago
4 0

Answer:

8.46%

Explanation:

Calculation for the the taxable equivalent yield for this investment

Using this formula

Taxable equivalent yield

=Tax-exempt yield / (1 − Your tax rate)

Let plug in the formula

Taxable equivalent yield=0.055 / (1 - 0.35)

Taxable equivalent yield=0.055/0.65

Taxable equivalent yield=0.0846*100

Taxable equivalent yield= 8.46%

Therefore the taxable equivalent yield for this investment is 8.46%

You might be interested in
A security firm is offered $80,000 in one year for providing CCTV coverage of a property. Thecost of providing this coverage to
e-lub [12.9K]

Answer:

contract s not acceptable

Explanation:

Given data:

worth of CCTV coverage contract = $ 80,000

Coverage Cost   = $ 74,000

Interest rate = 8.5%

Present value of the CCTV coverage is PV

PV = \frac{$ 80,000}{1.0850} = $ 73,732.72

As we can see from above calculation that present value of receivable amount is less than  current cost, hence the contract is not acceptable

5 0
3 years ago
On January 1, 2018, Moonbucks, Inc., received $79,380 and agreed to pay $100,000 in 3 years on December 31, 2020. The market rat
solniwko [45]

Answer:

Explanation:

Interest expense refers to charges paid for borrowing money. It is the money that a lender charges  borrower for borrowing money from him. In the income statement, it represents interest to be paid on borrowings such as bonds, loans, convertible debt or lines of credit. It is calculated as product of the interest rate times the outstanding principal amount of the debt.

Given that:

Moonbooks received $79,380 =  principal amount of debt (P)

The interest rate (r) = 8% annually = 0.08.

Interest expense payable for 2018 (first year) = P × r = $79380 × 0.08 = $6350

For the second year i.e 2019 The principal amount of debt = $79380  + $6360 = $85730

Interest expense payable for 2019 (second year) = P × r = $85730 × 0.08 = $6858

6 0
3 years ago
How do property rights benefit entrepreneurs?
nexus9112 [7]
Property rights can help the entrepreneurs by enabling them to purchase capital and use it as they fit. having the rights means they can use the property for martgage and raise loans,or show as an asset and acquire capital on its worth. they can sublet the property and get resources from the rent as well
7 0
3 years ago
Read 2 more answers
The agency relationship in corporate finance occurs:__________
miskamm [114]

Answer:

when the shareholders hire a manager to run their company.

Explanation:

An agency relationship in corporate finance is a situation whereby a party known as an agent is hired by another party which is the principal, to perform certain functions or services. Based on this question, the share holders are known as the principal while the manager act as the agent. The relationship is formed after the agent has agreed that he or she will represent the principal

3 0
3 years ago
Which of the following is the best description of
olganol [36]

Answer:

D. Changing practices superficially to appear more  environmentally friendly to consumers than they  truly are.

Explanation:

Greenwashing is the act of corporate companies in their attempts to convey a false impression to their customers that their products are environmentally friendly. Through this process, they provide misleading information.

Companies provide misleading information to their customers, in making the impression that their products are more environmentally friendly than other products. Thus, <u>greenwashing can be described as changing the practices of the company/ brand superficially so that they appear more environmentally friendly than they really are to customers</u>.

4 0
3 years ago
Other questions:
  • Using the graph, complete the table that follows by indicating whether each statement is true or false. Statement True False Bet
    6·1 answer
  • An expectation that people will help those who depend on them is known as the
    8·1 answer
  • The following information is available for Sheridan Company:
    11·1 answer
  • A central point within an organization from which all customer service contacts are managed by various forms of technology is th
    10·1 answer
  • n principle, a tendency for firms to congregate in a single nation to reap trade-cost advantages related to key inputs located w
    12·1 answer
  • If a corporation has only one class of stock, the account is entitled Common Stock or a.Owners' Stock. b.Preferred Stock. c.Capi
    14·1 answer
  • Karl Yates needs ​$24,000 to pay for the remodeling work on his house. A contractor agrees to do the work in 10 months. How much
    9·1 answer
  • Earning a profit may not be a companies_____ responsibility?
    15·2 answers
  • You've observed the following returns on Crash-n-Burn Computer's stock over the past five years: 10 percent, -10 percent, 17 per
    6·1 answer
  • Today public relations have emerged as a
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!