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maxonik [38]
3 years ago
14

The Omega Corporation has some excess cash it would like to invest in marketable securities for a long-term hold. Its Vice-Presi

dent of Finance is considering three investments: (a) Treasury bonds at a 11 percent yield; (b) corporate bonds at a 14 percent yield; or (c) preferred stock at an 12 percent yield. Omega Corporation is in a 40 percent tax bracket and the tax rate on dividends is 10 percent.
Required:
a. Compute the after-tax yields for the three investment options. (Do not round intermediate calculations. Input your answers as a percent rounded to 2 decimal places.)
b. Which one of the three investments should she select based on the after-tax yields?
Business
1 answer:
Leokris [45]3 years ago
4 0

Answer:1

Explanation:

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Farris Corporation, which has only one product, has provided the following data concerning its most recent month of operations:
krek1111 [17]

Answer:

$61

Explanation:

The computation of unit product cost for the month under absorption costing is shown below:-

Unit product cost = Direct material + Direct labor + Variable Manufacturing overhead + Fixed manufacturing cost

= $18 + $10 + $4 + ($255,200 ÷ 8,800)

= $61

Therefore for computing the unit product cost for the month under absorption costing we simply applied the above formula.

4 0
3 years ago
If luke can bake bread at a lower opportunity cost than jason, and jason can produce paintings at a lower opportunity cost than
ankoles [38]

Answer:

The correct answer is option d.

Explanation:

Comparative advantage refers to the situation where an individual, firm or nation can produce a good at a relatively lower cost than its competitors.

Luke can bake bread at a relatively lower opportunity cost while Jason can produce paintings at a relatively lower opportunity cost.

This implies that Luke has a comparative advantage in baking bread and Jason has a comparative advantage in making paintings.

Luke specializes in baking bread and Jason specializes in making paintings.

8 0
4 years ago
Plastix Produx Company is subject to a decision by the Consumer Product Safety Commission. Opposed to the decision, Plastix Prod
DIA [1.3K]

Answer:

The correct answer is c. the exhaustion doctrine.

Explanation:

"Exhaustion" refers to one of the limitations of intellectual property rights. Once a product protected by an intellectual property right has been marketed by your SME or by others with your consent, your SME is no longer entitled to exercise the intellectual property rights of the commercial exploitation of this given product, since it They have "sold out." Sometimes this limitation is also called the "first sale doctrine", since commercial exploitation rights on a given product end with the first sale of the product. Unless the legislation specifically provides otherwise, your SME may not control or oppose subsequent acts of resale, rental, loan or other forms of commercial use by third parties. There is a fairly broad consensus that this applies at least within the framework of the national market.

7 0
3 years ago
Cosmetics firm SatinSilk is revamping its mission statement and advertising strategy. The CEO stresses that the new mission stat
raketka [301]

Answer:

The answer is: C) to give customers the complexion they dream about by providing products suited to their needs

Explanation:

The mission statement states why a company exists and what is its overall goal.

This particular mission statement emphasizes:

  • Why SatinSilk exists: to give customers the complexion they dram about.
  • What is SatinSilk's overall goal:  to provide customers the products that suit their needs.  
6 0
3 years ago
Lew's increases its annual dividend by 2 percent annually. The last dividend paid was $1.42 and the stock price is $46. How is t
Goshia [24]

Answer:

Expected return=5.1%

Explanation:

The expected rate of return on the stock can be determined using the dividend valuation model

<em>According to this model, the value of a stock is the sum of the present values of the future dividend  that would arise from it discounted at the required rate of return.</em>

Using this model,

Cost of equity (Ke) =( D(1+g)/P) + g

Div in year 0, P= ex-div market price, g= growth rate in dividend

For this question

Expected rate of return = (1.42×(1+0.02)/46  + 0.02= 5.1%

Expected return=5.1%

7 0
3 years ago
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