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Arturiano [62]
3 years ago
9

Consider an investor facing a 38% marginal tax rate who purchases a tax-exempt issue with a yield of 4.25%. What is equivalent t

axable yield of his investment?A. 11.18% B. 4.25% C. 1.62% D. 6.85% E. 2.64%
Business
1 answer:
myrzilka [38]3 years ago
8 0

Answer:

Option D

Explanation:

We can calculate the  equivalent taxable yield of investor facing a 38% marginal tax rate investment as follows

DATA

Tax rate = 38%

After tax yield = 4.25%

Solution

Let's suppose the equivalent taxable yield is x then

x(1-0.38)=4.25

x(0.62)= 4.25

x = 6.85%

Option D would be the correct answer

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Assume that a state government currently provides no child-care subsidies to working single parents, but it now wants to adopt a
sergiy2304 [10]

Answer:

The line on the graph will be parallel to the pre-subsidy line and the new constraint will then be equal to the points connecting the two lines.

Explanation:

The subsidy by government to single parents is $3 per hour for up to 8 hours. The total of subsidy will be $16 for each day. The labor force who were not receiving the subsidy before had steep indifference curve but now few workers will find utility maximization with flatter indifference curve so the workers will join the subsidy program.

6 0
3 years ago
Catherine has been managing her company for a couple of years. She now plans to expand her business by bringing in fresh funding
klio [65]
I would say that for Catherine, the best place to inform her investors about a new stock issue would be a news release on her company website so in that way it is made public, informs the investors and may attract more capital investment in the company as well.

4 0
3 years ago
While waiting in line to buy two tacos at 75 cents each and a medium drink for 80 cents, Jordan notices that the restaurant has
puteri [66]

Answer:

The correct answer is $0,20.

Explanation:

The marginal cost, at each level of concrete production, indicates the costs we incurred in carrying out said production. Basically, it is an indicator that will allow us and help to make decisions regarding the preparation and production of goods and services.

In the previous case, the cost of buying two tacos for $ 75 each plus a $ 80 bedid is as follows:  

Tacos: $ 75 * 2 = $ 1,50

Drink: $ 80

TOTAL = 2,30

For its part, the second option is priced at $ 2,50

Subtracting the results, the marginal cost is defined as follows:

$ 2,50 - $ 2,30 = $ 0,20

6 0
3 years ago
The makers of Tide Detergent recently created "pods" of the product, characterized by a small, square, plastic-wrapped packet th
notsponge [240]

Answer:

maturity

Explanation:

Based on the information provided within the question it can be said that in this scenario the Tide Detergent "pods" product is in the maturity stage of the product life cycle. This stage is characterized by being the longest stage in the cycle and in which sales begin to decline because the product has reached the apex of the demand curve. Advertisement in this stage has little effect on sales for the product and instead the best option would be to make changes to the product in order to lower costs and thus increase more profits, which is what they have done by making the product easier and more affordable to transport

4 0
3 years ago
Which of the following costs do not vary with the amount of output a firm produces? a. average fixed costs b. fixed costs and av
Harrizon [31]

Answer:

d. fixed costs

Explanation:

The fixed cost is the cost which does not change if there is a change in the level of production i.e if the production level is increased or decreased it the fixed cost would remain the same as it is previous before

Therefore according to the given situation, since the fixed does not vary with the amount of firm output

Hence, option d is correct

4 0
3 years ago
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