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Andre45 [30]
3 years ago
13

An investor is in a 30% tax bracket. If corporate bonds offer 9% yields, what must municipals offer for the investor to prefer t

hem to corporate bonds?
Business
1 answer:
Oduvanchick [21]3 years ago
8 0

Answer:

6.30%

Explanation:

For offering for the investor to prefer them to the corporate bond we need to calculate the after tax return which is shown below

After tax return is

= Before tax return × (1 - tax rate)

= 0.09 × (1 - 0.30)

= 0.063 or 6.30%

As the after tax return is 6.30% the same is to be offered for the investor

Hence, the correct answer is 6.30%

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Which of the following is true about finding the present value of cash flows? Finding the present value of cash flows tells you
antiseptic1488 [7]

Answer: The statement 2, "Finding the present value of cash flows tells you how much you need to invest today so that it grows to a given future amount at a specified rate of return." Is <u>TRUE.</u>

Explanation: "Finding the <u>FUTURE VALUE </u>of cash flows tells you what a cash flow will be worth in future years at a specified rate of return." is the definition for FUTURE VALUE.

6 0
3 years ago
p. 82) Which of the following is NOT a limitation of SWOT (Strengths, Weaknesses, Opportunity, Threats) analysis? A. Organizatio
PilotLPTM [1.2K]

Answer:

The correct answer is letter "B": SWOT's focus on the external environment is too broad and integrative.

Explanation:

The SWOT analysis is a study of the internal and external factors that influence companies' operations and from which the entity can take advantage of or steps to control risks. The <em>internal factors</em> are the Strengths and Weaknesses while the <em>external components</em> are the Opportunities and Threats of the firm.

<em>The SWOT's focus on the external environment is broad and integrative but such characteristic represents an advantage not a limitation of this strategic study.</em>

3 0
3 years ago
Hill Co. can further process Product O to produce Product P. Product O is currently selling for $60 per pound and costs $42 per
NARA [144]

Answer:

(A) True

Explanation:

Differential cost is the difference between the cost to produce Product O and produce Product P; in this case it’s the additional cost of $13 per pound to produce

So the statement “The differential cost of producing Product P is $13 per pound” is true

6 0
3 years ago
ohnstone Company is facing several decisions regarding investing and financing activities. Address each decision independently.
Vesnalui [34]

Answer:

Johnstone should value the equipment at <u>$40,326.29</u>.

Explanation:

To determine this, the present value of the five annual installments of $8,000 is first calculated using the formula for calculating the present value of an ordinary annuity as follows:

PV = P * ((1 - (1 / (1 + r))^n) / r) …………………………………. (1)

Where;

PV = Present value of the five annual installments =?

P = Annual payment = $8,000

r = interest rate = 10%, or 0.10

n = number of years = 5

Substitute the values into equation (1) to have:

PV = $8,000 * ((1 - (1 / (1 + 0.10))^5) / 0.10)

PV = $8,000 * 3.79078676940845

PV = $30,326.29

Therefore, the present value of the five annual installments of $8,000 is approximately $30,326.29.

As result of this:

Value the equipment = Payment on the purchase day + present value of the five annual installments = $10,000 + $30,326.29 = $40,326.29

Therefore, Johnstone should value the equipment at <u>$40,326.29</u>.

7 0
3 years ago
Classify each of the studies as either descriptive or inferential. Explain your answers.
Ludmilka [50]

Answer: Descriptive statistics uses the data to provide descriptions of the population, either through numerical calculations or graphs or tables. Inferential statistics makes inferences and predictions about a population based on a sample of data taken from the population in question.

Explanation: Scottsdale, AZ $167 0.973 12.43%

Washington, DC $436 0.990 2.88%

San Francisco $636 1.026 6.55%  

as Vegas, NV $74 1.000 19.45%

Nashville, TN $106 0.973 18.09%

They are all Inferential study

8 0
3 years ago
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