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Olenka [21]
2 years ago
12

If the before-tax rate of return on a corporate bond is 7%, an individual in the 25% marginal tax bracket would earn a _____ rat

e of return on the bond.
Business
1 answer:
Serhud [2]2 years ago
7 0
The answer is: 5.25%
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Consumer​ surplus:
elena-14-01-66 [18.8K]

Consumer surplus is the difference between the maximum amount the consumer is willing to pay for the price of the good and the price that was actually paid by the consumer or commonly known as the current market price. The price that the consumer is willing to pay is determined by the demand curve in the market.

8 0
3 years ago
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Your employer, a mid-sized human resources management company, is considering expansion into related fields, including the acqui
Anni [7]

Answer:

a. Debt holders have first claim on corporate value. The Preferred stockholders then have next claim and remaining is left for common stockholders.

b. The value of a financial asset is equal to present value of future cash flows which is provided by the asset. When investor buys a share of stock, (s)he typically expects to receive cash in the form of dividends and to sell the stock to receive cash from sale. However, the price any investor receives is highly dependent upon the dividends which the next investor expects to receive, and so on. Thus, the stock's value depends on cash dividends that the company is expected to provide and the discount rate used to find the present value of those dividends.

d. The formula to calculate present value of expected free cash flows is:

PVn=CFn(1+in)n

The formula for the present value of expected free cash flows when discounted at WACC is:

PV=∑Nn=0CFn(1+in)n

Explanation:

a. Debt holders have first claim on corporate value. The Preferred stockholders then have next claim and remaining is left for common stockholders.

b. The value of a financial asset is equal to present value of future cash flows which is provided by the asset. When investor buys a share of stock, (s)he typically expects to receive cash in the form of dividends and to sell the stock to receive cash from sale. However, the price any investor receives is highly dependent upon the dividends which the next investor expects to receive, and so on. Thus, the stock's value depends on cash dividends that the company is expected to provide and the discount rate used to find the present value of those dividends.

d. The formula to calculate present value of expected free cash flows is:

PVn=CFn(1+in)n

The formula for the present value of expected free cash flows when discounted at WACC is:

PV=∑Nn=0CFn(1+in)n

8 0
3 years ago
Each scenario below illustrates a basic underlying principle of economics of how economies work through the interactions of indi
vladimir1956 [14]

Answer:

The correct answer is: market efficiency; government intervention; specialization; equilibrium.

Explanation:

The owner of the snow cones realizes that the demand for snow cones has decreased in winter, and thus, closes shop to open back. This is an example of market efficiency.  

The local river is being polluted too much because of the amount of chemicals being dumped in the river. The government puts regulation on the amount of chemicals being dumped. This is an example of government intervention in the economy.  

At a restaurant one chef is placed at the vegetable station, one chef is at meat station, and one is to plate the food. This an example of specialization the management is placing chef that specializes in vegetable, meat and in plating at their respective positions.

The favorable whether leads to increase in supply of oranges. This causes a rightward shift in supply curve. The price of oranges fall as a result. This is an example of change in equilibrium.

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3 years ago
The coding system that is used primarily for reporting diagnoses for hospital inpatients is known as:
Inga [223]
The answer is: ICD-10-CM
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3 years ago
Jess wrote Amanda a check for $358.36, and Amanda deposited the check into her checking account. Where was Amanda's signature?
vovikov84 [41]
On the back of the check
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3 years ago
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