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3 years ago

Which of the following is true about bonds?

Business

1 answer:

nata0808 [166]3 years ago

8 0

Answer:

B. The primary advantage to municipal bonds is that interest income received is not taxed by the federal government.

Explanation:

A bond can be defined as a debt or fixed investment security, in which a bondholder (investor or creditor) loans an amount of money to the bond issuer (government or corporations) for a specific period of time. The bond issuer are expected to return the principal (face value) at maturity with an agreed upon interest (coupon), which are paid at fixed intervals.

A municipal bond can be defined as a type of bond that is typically issued by a municipality, county, local government or state in order to finance or sponsor capital expenditures for the public such as water supply, construction of roads, etc.

Hence, the primary advantage to municipal bonds is that interest income received on this type of bond is not taxed by the federal government.

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Taser Industries must decide whether to make or buy some of its components. The costs of producing 175,000 battery packs for its

Andrei [34K]

Answer:

It is cheaper to produce in-house. Cost savings= $3500

Explanation:

We need to find whether it is better to produce in-house or to purchase to a supplier.

Q= 175000

Produce in house:

Direct Materials $15,000

Direct Labor $5,000

Variable overhead $6,000

Fixed overhead $9,000

Total cost= $35000

Outsource:

Purchase Cost= 175000q*$0.18= $31500

Fixed Cost= (9000-2000)= $7000

Total cost=$38500

It is cheaper to produce in-house. Cost savings= $3500

6 0

3 years ago

You've observed the following returns on Crash-n-Burn Computer's stock over the past five years: 6 percent, -14 percent, 12perce

Alexeev081 [22]

Answer:

1.6%

Explanation:

For computing the average nominal risk premium, first we have to determine the average nominal return which is shown below:

= (Stock over past five years) ÷ (number of years)

= (6% - 14% + 12% + 9% + 11%) ÷ (5 years)

= 4.8%

Now the average nominal risk premium would be

= Average nominal return - average T-bill rate

= 4.8% - 3.2%

= 1.6%

3 0

3 years ago

Robert is a successful 51-year-old, lives in the suburbs, and enjoys reading Jet and Ebony magazines. He drives out of his way t

myrzilka [38]

Answer:

Boomer blacks

Explanation:

Daniel Yankelovich and Radio One carried out a segmentation study titled <u>The Black America Today study</u> about African American consumers. This study was carried out in order to determine a way to better reach consumers, since general labels like Latino communities or African American communities are too broad for marketing purposes. They segmented African Americans into:

Connected Black Teens
Digital Networkers
Black Onliners
Stretched Black Straddlers
New Middle Class
Family Struggles
Black is Better
Sick and Stressed
Faith Fulfills
Broadcast Blacks
Boomer Blacks: they represented the oldest group studied by Yankelovich, with an average age of 52. They believe in black roles models, and are very tech savvy. They also belong to upper middle class or upper class.

4 0

3 years ago

Mr. Decker invested $20,000 in cash in his new business. How does the company record the investment?

Rudiy27

Answer:

The company records the investment by the entry:

(D) debit Cash and credit Owner's Equity

Explanation:

Mr. Decker invested $20,000 in cash in his new business. He is the Owner of the company.

In the case, the company that he invested received cash from Mr. Decker.

The company will record the increasing in cash and increasing in Owner's Equity account by the journal entry:

Debit Cash $20,000

Credit Owner's Equity $20,000

8 0

3 years ago

Novak Corp. has 6000 shares of 5%, $100 par value, cumulative preferred stock and 12000 shares of $1 par value common stock outs

Annette [7]

Answer:

See below

Explanation:

Given the above data,

Preferred shares = 6,000 shares × $100 = $600,000

Dividend on preference shares = $600,000 × 5% = $30,000 per year

Dividend declared in 2019

= $55,800

Preferred dividend in 2019 = $30,000 × 2 = $60,000

Dividend declared in 2020 =$55,800

Preferred dividend declared in 2020 = $30,000 + $4,200 = $34,200

Dividend paid to common stock holders = $55,800 - $34,200 = $21,600

5 0

3 years ago