Larry was shopping at a Target store when he suddenly remembered he had an appointment with his Law 240

Future value of an annuity: Carlos Menendez is planning to invest $3,500 every year for the next six years in an investment payi

emmainna [20.7K]

7 is the annual rate for 6 years

8 0

3 years ago

Assume you are in the 35 percent tax bracket and purchase a municipal bond with a yield of 7.25 percent. Use the formula present

balu736 [363]

Answer:

before tax corportate bond equivalent: 11.15%

Explanation:

The municipal bond are tax-free making them more attractive than normal corporate bonds.

thus, the municipal bond rate should be compare with the after tax rate of a corporate bond:

before tax rate ( 1 - tax rate) = after tax rate

For this case:

the after tax rate is 7.25%

and the tax bracket is 35%

before taxes ( 1 - 0.35) = 0.0725

0.0725/.65 = 0,1115384 = 11.15%

3 0

3 years ago

Lindsay Electronics, a small manufacturer of electronic research equipment, has approximately 6 comma 800 items in its invento

nignag [31]

Answer:

97.8 or 98 items

Explanation:

A items:

= Percent of items in inventory × No. of items

= 0.1 × 6,800

= 680

B items:

= Percent of items in inventory × No. of items

= 0.31 × 6,800

= 2,108

C Items:

= Percent of items in inventory × No. of items

= 0.59 × 6,800

= 4,012

Units to be counted everyday:

$=\frac{A\ items}{workings\ days} + \frac{B\ items}{workings\ days} + \frac{C\ items}{workings\ days}$

$=\frac{680}{22} + \frac{2,108}{61} + \frac{4,012}{124}$

= 30.90 + 34.55 + 32.35

= 97.8 or 98 items

7 0

3 years ago

Oscar Clemente is the manager of Forbes Division of Pitt, Inc., a manufacturer of biotech products. Forbes Division, which has $

inessss [21]

Answer:

Residual income is therefore $732,000.

Explanation:

This can be computed by following the following steps:

Step 1: Calculation of ending net book value

Particulars $'000

Beginning investment 6,900

add: Additional investment 8,100

Less: Depreciation - Other (2,850)

Ending net book value 12,150

Step 2: Calculation of Minimum required return

Minimum required return = Ending net book value * Required return rate = $12,150,000 * 12% = $1,458,000

Step 3: Calculation of profit (loss) on disposal

First year depreciation on investment = (Investment cost - Salvage value) / Useful life = ($6,600,000 - $660,000) / 3 = $1,980,000

Profit (loss) on disposal = Salvage value - Investment cost - First year depreciation on investment = $660,000 - $6,600,000 - $1,980,000 = $3,960,000 loss

Step 4: Calculation of residual income

Particulars $'000

Given operating profit of the division 6,150

Less: Loss on disposal (3,960)

Revised operating income 2,190

less: Minimum required return (1,458)

Residual income 732

Residual income is therefore $732,000.

7 0

3 years ago

The Probability that no customers are in the system

Bumek [7]

Answer:most percent

Explanation:took quiz

4 0

3 years ago