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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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Bedrock Company reported a December 31 ending inventory balance of $412,500. The following additional information is also availa
belka [17]

Answer:

The correct Ending Balance = $ 390300

Explanation:

Ending Balance of inventory = $ 412500

Less Office Supplies   = $22,200

The correct Ending Balance = $ 390300

Goods already cosigned are the consignor's inventory unless they are sold. They are not included in the consignee's inventory. So they will be included in the ending inventory.The office Supplies are not the inventory goods. They are daily expense goods and are not included in the inventory.

3 0
3 years ago
Read 2 more answers
The following are the unit costs of making and selling an item at a volume of 30,000 units per month, which represents the compa
nadezda [96]

Answer:

$7.90 per unit

Explanation:

The computation of the   minimum price on these defective units is shown below:

It is equivalent to the selling & admin variable cost per unit i.e. $7.90 per unit

oAs all the other cost would be considered as a sunk cost because the product is already generated and the fixed cost is not considered as it would remain the same whether the production is increase or not

Therefore the second option is correct

5 0
3 years ago
The consumer sector is the largest part of the macroeconomy. Please select the best answer from the choices provided T F
cricket20 [7]
The answer is true bc businesses depend on consumers buying their product
5 0
3 years ago
Rent revenue $6540 Sales discounts $7830 Interest expense 13260 Selling expenses 99710 Beginning retained earnings 114930 Sales
Stels [109]

Answer:

Income Statement  

Sales Revenue $ 402.000

Sales discounts -$ 7.830

Sales returns and allowances -$ 12.740

Net Revenue $ 381.430

Net Income -$ 22.779

Income attributable to controlling stockholders

Net Income -$ 22.779

Allocation to noncontrolling interest  -$ 19.720

Income attributable to controlling stockholders -$ 62.219

Explanation:

Total Net revenue it's calculated with the Sales Revenue less Sales discounts and Returns and allowances.

Net Income it's calculated with the total Net Sales minus cost of goods sold, Expenses, Interest and Taxes  for a determinated period.

To calculate the income to controlling stockholders it's necessary to subtracted at the end of the statement  which they do not own.

Income Statement  

Sales Revenue $ 402.000

Sales discounts -$ 7.830

Sales returns and allowances -$ 12.740

Net Sales $ 381.430

Cost of goods sold -$ 188.417

Gross Profit $ 193.013

Administrative Expenses -$ 80.660

Selling Expenses -$ 99.710

Other Income Rent Revenue $ 6.540

Net Income BEFORE Taxes $ 19.183

Interest Expenses -$ 13.260

Net Income BEFORE Taxes $ 5.923

Income Taxes  -$ 28.702

Net Income -$ 22.779

Allocation to noncontrolling interest  -$ 19.720

Income attributable to controlling stockholders -$ 62.219

4 0
3 years ago
Percy’s GPA is 2.75, so he should list it on his résumé. T/F
timama [110]
In filling up a resume, there are questions that are basic and necessary that a person should feel up to satisfy the qualifications that the client is looking for. But in terms of GPA, like Percy's. It is not appropriate to put it on the resume unless if asked or needed. But most of the time, it is not needed so the answer is false.
3 0
3 years ago
Read 2 more answers
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