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riadik2000 [5.3K]
3 years ago
5

A municipal bond has yield to maturity of 4.83 percent. An investor with a marginal tax rate of 35 percent is indifferent betwee

n this municipal bond and an otherwise identical taxable corporate bond. What is the yield to maturity of the corporate bond
Business
1 answer:
mezya [45]3 years ago
3 0

Answer: 7.43%

Explanation:

The yield to maturity simply refers to the total return that is expected on a bond as long as the bond is held till it matures.

In this case, since the investor is indifferent between this municipal bond and an otherwise identical taxable corporate bond, the yield to maturity of the corporate bond will be:

4.83% = Corporate bond YTM × ( 1- 35%)

4.83% = Corporate bond YTM × 65%

Corporate bond YTM = 4.83% / 65%

Corporate bond YTM = 0.0483/0.65

Corporate bond YTM = 7.43%

The yield to maturity of the corporate bond is 7.43%

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Which of the following best describes information governance (IG)? a. IG is the overarching framework in which RIM resides. b. I
Rom4ik [11]

Answer: Option (A). IG is the overarching framework in which RIM resides.

Explanation: Information governance is an organization's data management-related processes, roles and controls that ensure data remains a trusted business asset. Furthermore, Information Governance (IG) is to do with the way organisations 'process' or handle information and it refers to a policy or framework outlining acceptable behaviour for managing, organising and sharing information, data and files.

4 0
3 years ago
Operating Leverage Beck Inc. and Bryant Inc. have the following operating data: Beck Inc. Bryant Inc. Sales $1,250,000 $2,000,00
Ivenika [448]

Answer:

1. a. For Beck Inc = $5

b. For Bryant Inc. = 2.5

2. For Beck Inc = $100,000

For Bryant Inc. = $150,000

Explanation:

The computation of given question is shown below:-

a. Operating leverage = Contribution ÷ Net income

For Beck Inc

= $500,000 ÷ $100,000

= $5

For Bryant Inc.

= $750,000 ÷ $300,000

= $2.5

2. Operating income = Current Earning before interest and tax × Percentage increase in profit

For computing the operating income first we need to compute the increase in profit.

Increase in profit =  Operating leverage × Percentage

For Beck Inc. = $5 × 20%

= 100%

now we put into formula

= $1,00,000 × 100.00%

= $100,000

For Bryant Inc. = $2.5 × 20%

= 50%

now we put into formula

= $3,00,000 × 50%

= $150,000

4 0
3 years ago
The tiny isolationist nations of Lorland and Zhangia are considering opening their borders to trade with each other. Both nation
Svetlanka [38]

Answer:

Lorland

Zhangia

sandals

smoothies

Explanation:

A country should specialise goods for which it has a comparative advantage in its production.

A country should import goods for which it has no comparative advantage in its production.

A country has comparative advantage in production if it produces at a lower opportunity cost when compared to other countries.

Lorland

Opportunity cost in the production of one smoothie = 8/2 = 4

Opportunity cost in the production of one sandal = 2/8 = 0.25

Zhangia

Opportunity cost in the production of one smoothie = 5/1 = 5

Opportunity cost in the production of one sandal = 1/5 = 0.2

Zhangia has a comparative advantage inn the production of sandals and should specialise in the production of sandals while lorland has a comparative advantage in the production of smoothies specialise in the production of smoothies

Loriland should import sandals and export smoothies

6 0
3 years ago
What is the difference between earnings per share (EPS), funds from operations (FFO), adjusted funds from operations (AFFO), and
Rina8888 [55]

Answer:

Earnings per share is defined as the net earnings/ profit of a company divided by the number of common stock outstanding. It therefore shows just how much the company made per individual share.

Funds from Operations (FFO) on the other hand refer to cashflow from operations of Real Estate Investment Trusts (REITs). REITS use this as their EPS and so it is sometimes quoted per-share.

Adjusted Funds From Operations (AFFO) are calculated in similar fashion to FFOs and used by REITS as well. This one adjusts the FFO for costs incurred which means it is more accurate and so preferred over FFO.

Dividend per share is the amount of dividend that has been paid to each share within a period. This definition means that even interim dividends are included in the calculation which is done by dividing the total dividends over a period by the number of outstanding shares a company has.

3 0
3 years ago
Department C had direct materials EUP cost of $4.00 and conversion EUP cost of $2.50. If the department had 38,000 units complet
Vanyuwa [196]

Answer:

cost of units completed for Direct material =$152,000

Explanation:

given data

direct materials EUP cost = $4.00

Number of units  = 38,000

conversion EUP cost = $2.50

solution

we get here cost of units completed for Direct material that is express as

cost of units completed for Direct material = direct materials EUP cost × Number of units    .................1

put here value and we will get

cost of units completed for Direct material =  $4 × 38,000

cost of units completed for Direct material =$152,000

5 0
4 years ago
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