1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
adell [148]
2 years ago
8

Mr. Brown is in the 10 percent federal income tax bracket and wants to invest $10,000 in interest-earning assets. Mr. Black is i

n the 35 percent bracket and wants to invest $15,000. The current rate on a typical high-quality tax-exempt municipal bond is 3.5 percent and on a high-quality corporate bond is 4 percent. You are the financial advisor to both. Which investment would you recommend to each individual?
Business
1 answer:
snow_lady [41]2 years ago
5 0

Based on the information given, the corporate bond will be recommended for Mr. Brown while the municipal bond will be recommended for Mr Black.

<u>Mr Brown:</u>

The after-yield tax on corporate bonds will be:

= Before tax yield × (1 - tax rate)

= 4% × (1 - 0.10)

= 3.60%

After tax yield on municipal bond will be:

= 3.5% × 1 = 3.5%

The corporate bond is recommended.

For <u>Mr. Black</u>

The after-yield tax on corporate bonds will be:

= 4% × (1 - 0.35)

= 2.60%

The after-yield tax on municipal bonds will be:

= 3.5% × 1

= 3.5%

Therefore, the municipal bond is recommended.

Red related link on:

brainly.com/question/25379770

You might be interested in
The structure which takes one of two paths based on a decision is called a(n) ____ structure.
Rus_ich [418]
An if then else structure.
Hope it helps!
5 0
3 years ago
A(n) __________ is one that appears to be an agreement but lacks an essential requirement for validity and enforceability. Multi
Iteru [2.4K]

A document that purports to be an agreement but does not include all necessary terms is known as a void contract. Therefore, choice 3 is right.

<h3>What do you mean by a contract?</h3>

A contract is defined as a commitment to do something between two or more parties. A loan arrangement between automobile purchasers and sellers is an illustration of a contract.

An arrangement between two persons to get married is an example of a contract.

A formal contract that is effectively void and unenforceable from the moment it is created is known as a void contract.

Hence, the correct option is Void contract to be filled in given blank

Learn more about contracts:

brainly.com/question/2669219

#SPJ1

3 0
2 years ago
5. Debit cards can be:
Molodets [167]
The answer to that question is letter D. hope this helps
5 0
3 years ago
Read 2 more answers
When quantity demanded is greater than quantity supplied, the resulting shortage causes the price to fall?
anygoal [31]
No, the price will rise because more people are competing for the products
5 0
3 years ago
In December 2016, Learer Company’s manager estimated next year’s total direct labor cost assuming 40 persons working an average
nignag [31]

Answer:

1a. Predetermined Overhead Rate= 60%

Explanation:

Predetermined Overhead Rate=

Estinated overhead cost/Direct labor cost= $1,440,000/(40*$20*3000)

=60%

1b. Total Overhead Cost applied to each job

Job No Direct Labor Applied FOH60%

201 606,000 363,600

202 565,000 339,000

203 300,000 180,000

204 718,000 430,800

205 316,000 189,600

206 19,000 11,400

Total $2,524,000 $1,513,600

Overhead cost applied=

Direct Labor (1.b) * Predetermine overhead rate (1.a)

example:

(Job No. 201) 606,000 * 0.6 = 363,600

1c. Over applied or under applied at year end 2017

Actual Over head cost $1,542,000

Less:Overhead Appied - $1,513,600

Under applied over head $28,400

2. Adjusting Entry

Date Account Title Debit Credit

Dec Cost of goods $28,400 -

-31 sold

Factory - $28,400

Overhead

5 0
3 years ago
Read 2 more answers
Other questions:
  • Dell is a product of the Digby company. Digby's sales forecast for Dell is 1856 units. Digby wants to have an extra 10% of units
    8·1 answer
  • The wireone company manufactures high-quality coated electrical wire in two departments, weaving and coating. materials are intr
    11·1 answer
  • What is a system involving the use of the experience, knowledge, and attentiveness of all crew members in the decision making pr
    5·1 answer
  • If planned aggregate spending in an economy can be written as pae = 15,000 + 0.6y - 20,000r, and potential output equals 36,000,
    12·1 answer
  • One of Tony Hsieh’s most important roles now is to act as a cultural leader for Zappos. Using your knowledge of cultural leaders
    7·1 answer
  • Scott is the district manager for sales for his company. On a regular basis he talks with his team members about their progress
    7·1 answer
  • 5. Consider a firm redesigning its logistics network. What are the advantages to having a small number of centrally located ware
    13·1 answer
  • Sarah borrowed $16,500 on May 23 with interest due on September 3. If the interest rate is 9%, find the interest on the loan usi
    5·2 answers
  • In an organization, a strategic perspective or view-point for the organization should be emphasized Select one: a. at the top of
    11·1 answer
  • With iOS, its particularly important for an app to minimize the persistent storage placed in the app's home directory. This is b
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!