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alexgriva [62]
3 years ago
14

An investor in the 32% tax bracket is considering two investment options of equal risk: a corporate bond that yields 8.25% and a

municipal (muni) bond that yields 4.75%. Assuming the investor will select the bond with the highest yield, which bond should this investor choose
Business
1 answer:
Gala2k [10]3 years ago
7 0

Answer: Corporate bond

Explanation:

It should be noted that the municipal bond aren't taxable. Therefore, its yield will be 4.75%.

On the other hand, the After Tax Cost of the yield of the corporate bond will be:

= Yield × (1-Tax Rate)

= 8.25% × (1-35%)

= 8.25% × 65%

= 5.36%

Therefore, the Corporate Bond should be chosen since it has a higher yield.

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Sanyo Corporation manufactures a popular model of business calculators in a suburb of Seoul, South Korea. The production process
Elden [556K]

Question a)

The sum of the <u>Total assets</u> plus <u>total fixed assets</u> results in <u>total assets</u>.

Question b)

The division of <u>Net sales</u> over <u>total assets</u> results in <u>Asset Turnover</u>

Question c)

The subtraction of the <u>cost of good sold</u> from <u>net sales</u> is equal to the <u>gross margin</u>

Question d)

The subtraction of <u>Operating expenses</u> from <u>gross margin</u> results in the <u>Net Operating profits, before the taxes.</u>

Question e)

The subtraction of <u>Taxes</u> from <u>Net Profit before tax</u> results in <u>Net profit after taxes</u>

Question f)

The division of <u>Net profit after tax </u>over the <u>Net saves</u> gives you the <u>Net profit margin percentage.</u>

Question g)

The division of <u>Net profit Margin percent</u> over the <u>asset turnover </u>results in a <u>return on assets. </u>

5 0
3 years ago
The Hartford Symphony Guild is planning its annual dinner-dance. The dinner-dance committee has assembled the following expected
Lelu [443]

Answer:

Instructions are listed below

Explanation:

Giving the following information:

The dinner-dance committee has assembled the following expected costs for the event:

Dinner (per person) $ 18

Favors and program (per person) $ 2

Band $ 2,800

Rental of ballroom $ 900

Professional entertainment during intermission $ 1,000

Tickets and advertising $ 1,300

The committee members would like to charge $35 per person.

1) Break-even point= fixed costs/ contribution margin

Break-evenn point= (Band+rental+professional entertainment+tickets)/[price - (dinner+favors)]

Break-even point= 6000/(35-20)= 400 individuals

2) Q= 300    P=?

300=6000/(P-20)

300*(P-20)= 6000

300P=12000

P=$40

7 0
3 years ago
20% of students in a class go to professor during office hours. of those who go 30% seek minor clarification. 70% seek major cla
aksik [14]

a. The probability that a student goes to seek for minor clarification from the professor during office hours = 6%.

b. The probability that a student goes to the professor for major clarification = 14%.

Data and Calculations:

Percentage of students in the class who go to the professor to seek clarifications = 20% (a)

Percentage of students in the class who do not go to the professor to seek clarifications = 80% (100% - 20%) (b)

Percentage of (a) who seek minor clarification = 30%

Percentage of (a) who seek major clarification = 70%

Probability of (a) seeking minor clarification = 6% (20% x 30%)

Probability of (a) seeking major clarification = 14% (20% x 70%)

Thus, the probability of students seeking minor clarification is 6% while the probability of students seeking major clarification is 14%.

Learn more about probability at brainly.com/question/13604758

8 0
2 years ago
how can the size of the industrial/service sector and the agriculture employment rate indicate the level of industrialization?​
andriy [413]

Answer:

A larger industrial and service sector, and a larger number of people working outside of agriculture, can indicate a higher level of industrialization in the economy and vice versa. This means that the size of industrial service and the sector of agriculture employment rate indicates the level of industrialization because if the agriculture employment is higher than the industrial service it means that the country is not fully developed yet and therefore the level of industrialization is lower. But if the industrial service is higher than the agriculture employment that suggests or indicates that the country is developing or developed. For example in the United States the size of the industrial/service sector is much larger than it's agricultural employment and therefore this should suggest that country is much more industrialized or developed and the United States is. In comparison you take a developing country such as Chad and you can see that the agricultural employment is higher than the size of the industrial/service sector and in relation to this you can see that Chad must have a lower level of industrialization and in fact it does.

Explanation:

4 0
3 years ago
Grady exchanges qualified property, basis of $21,833 and fair market value of $26,200, for 60% of the stock of Eadie Corporation
Svetach [21]

Answer:

$26,200

Explanation:

Current gain = Fair market value of the property - Basis of qualified property = $26,200 - $21,833 = $4367. Thus, the amount of Grady current gain is $4,367

We now determine the basis that Gredy takes for the share of Eadie stock

Basis = Original basis of qualified property + Current gain

Basis = $21,833 + $4,367

Basis = $26,200

Thus,  basis that Gredy takes for the share of Eadie stock is $26,200

3 0
3 years ago
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