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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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Gammy Corporation provides services with a normal price of $800,000 and a trade discount of $100,000. Terms are 2/10, n/30 and t
kobusy [5.1K]

Answer:

The net service revenue amounts to $686,000

Explanation:

The formula to compute the net service revenue is as:

Net Service Revenue = (Price - Trade discount) - Discount of 2%

where

Price is $800,000

Trade discount is $100,000

And the discount of 2%

Therefore,

NSR = ($800,000 - $100,000) -Discount of 2%

= $700,000 - 2% 0f $700,000

= $700,000 - $14,000

= $686,000

NOTE: The customer paid within 10 days so the customer is allowed for 2% discount on the amount.

6 0
4 years ago
Kegler Bowling installs automatic score-keeping equipment with an invoice cost of $190,000. The electrical work required for the
kogti [31]

Answer:

 $229,550  

Explanation:

The computation of the total recorded cost is shown below:

Particulars  Total cost Included or  Excluded Machinery Expense

Invoice cost $190,000 Included                         $190,000  

Electrical work

required

for installation  $20,000 included                         $20,000  

Delivery costs  $4,000         included                          $4,000  

Sales tax      $13,700         included                           $13,700  

Repair costs   $1,850          excluded                                   $1,850

Total            $229,550                                      $227,700 $1,850

The invoice cost, electrical cost, delivery cost, sales tax included in the machinery and the repair cost is an expense so it come under the expense  

8 0
3 years ago
According to Keynesians, an increase in the money supply will have its greatest impact on GDP when the aggregate demand curve in
sladkih [1.3K]

the horizontal portion of the aggregate supply curve.

What is GDP?

The total monetary or market worth of all the finished goods and services produced within a nation's boundaries during a certain time period is known as the gross domestic product (GDP). It serves as a thorough assessment of the state of the economy in a particular nation because it is a wide indicator of total domestic production.

Even while GDP is frequently estimated on a yearly basis, it can also be calculated quarterly. For instance, the government of the United States produces an annualized GDP estimate for both the calendar year and each fiscal quarter. Each piece of data in this report is presented in real terms, which means that it has been adjusted for price changes and is therefore net of inflation.

Learn more about GDP with the help of given link:-

brainly.com/question/1383956

#SPJ4

5 0
2 years ago
Although most alexandria staff are voracious readers, no one has read all of the books sold by alexandria and most know some are
velikii [3]

Answer:

A hyper-social knowledge management.

Explanation:

Hyper-social knowledge platforms apply the concepts of social media to information databases. So employees could comment, share, and add to post with important information that they know to help out employees who don't know as much about that subject.

3 0
3 years ago
You receive payments at the end of each Quarter starting at the end of Quarter 1 and lasting 6 years (so the last payment you re
OleMash [197]

Answer:

PV = PMT [(1 - (1 / (1 + r)ⁿ)) / r]

Where:

PV = The present value of the annuity

PMT = The amount of each annuity payment

r = The interest rate

n = The number of periods over which payments are to be made

PV = PMT [(1 - (1 / (1 + r)ⁿ)) / r]

     = 1000 [(1 - (1 / (1 + 0.0083)²⁴)) / 0.0083]

     = 1000 [(1 - (1 / 1.2194)) / 0.0083]

     = 1000 [(1 - 0.8201) / 0.0083]

     = 1000 [0.1799‬ / 0.0083]

     = 1000 * 21.6747

PV = $ 21,674.70

Explanation:

Since the annuity is compounded monthly

r = 10% / 12 = 0.83%

n = 24

4 0
4 years ago
Read 2 more answers
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