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Romashka [77]
2 years ago
14

A bond issued by the state of Alabama is priced to yield 6.40%. If you are in the 30% tax bracket, this bond would provide you w

ith an equivalent taxable yield of _________.
a. 4.48%
b. 7.40%
c. 9.14%
d. None of these options
Business
1 answer:
jek_recluse [69]2 years ago
8 0

If you are in the 30% tax bracket, this bond would provide you with an equivalent taxable yield of c. 9.14%.

<h3>Equivalent taxable yield</h3>

Using this formula

Equivalent taxable yield=Bond price/(1-Tax rate)

Where:

Bond price=6.40%

Tax rate=30%

Let plug in the formula

Equivalent taxable yield= 6.40%/(1 - 0.30)

Equivalent taxable yield=6.40%/70%

Equivalent taxable yield=9.14%

Inconclusion if you are in the 30% tax bracket, this bond would provide you with an equivalent taxable yield of c. 9.14%.

Learn more about equivalent taxable yield here:brainly.com/question/25656290

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Fiscal policy refers to the idea that aggregate demand is affected by changes in Group of answer choices the money supply govern
Alik [6]

Answer:

All answers are correct except Money Supply

Explanation:

Fiscal policy affects aggregate demand through government spending and taxes. Government may increase taxes to increase revenue or discourage the consumption of a product. On the flipside, they may reduce taxes to stimulate spending, redistribute income, increase aggregate demand among other objectives.

Money supply is a monetary policy and it is used by the central bank to achieve certain objectives (reduce inflation, stimulate growth, increase demand, etc.)

Government spending is a fiscal policy that government uses to achieve a set of objectives (i.e. to supply goods and services that are not provided by the market or private sector – construct bridges, provide health facilities, social programmes for the poor among others).

Taxes – Tax is a fiscal policy tool used by the government to generate revenue, encourage or discourage the consumption of certain products or affect aggregate demand through income redistribution.  

Trade policy could be in the form taxes (i.e. tariffs, import duties, custom duties among others). Trade policy is a fiscal policy as government can use it to control aggregate demand by placing embargo on the importation of certain products to reduce the demand of such products in the local economy.

5 0
3 years ago
Below are the transactions for Salukis Car Cleaning for June, the first month of operations.
Kruka [31]

Answer:

Part 1

June 1

Debit : Cash $53,000

Credit : Bank Note $53,000

June 2

Debit : Cash $23,000

Credit : Common Stock $23,000

June 7

Debit : Equipment $58,000

Credit : Cash $58,000

June 10

Debit : Supplies $6,300

Credit : Account Payables $6,300

June 12

Debit : Cash $3,300

Credit : Service Revenue $3,300

June 16

Debit : Salaries $730

Credit : Cash $730

June 19

Debit : Advertising $330

Credit : Cash $330

June 23

Debit : Trade Receivables $4,300

Credit : Service Revenue $4,300

June 29

Debit : Salaries $780

Credit : Cash $780

June 30

Debit : Utility Bill $1,230

Credit : Cash $1,230

June 30

Debit : Dividends $430

Credit : Cash $430

Part 2 & 3

Cash : Debit Side - $53,000 + $23,000 + $3,300, Credit Side - $58,000 + $730 + $330+ $780+ $1,230+$430 = $17,800 (debit)

Bank Note : Debit Side  - Credit Side  - $53,000  = $53,000 (credit)

Common Stock : Debit Side - Credit Side - $23,000 = $23,000 (credit)

Equipment : Debit Side - $58,000 Credit Side - = $58,000 (debit)

Supplies : Debit Side - $6,300 Credit Side - = $6,300 (debit)

Accounts Payable : Debit Side - Credit Side - $6,300 = $6,300 (credit)

Service Revenue ; Debit Side - Credit Side - $3,300 + $4,300 = $7,600(credit)

Salaries : Debit Side - $730 + $780 Credit Side - = $1,510 (debit)

Advertising : Debit Side - $330 Credit Side - = $330 (debit)

Accounts Receivables : Debit Side - $4,300 Credit Side - = $4,300 (debit)

Utility Bill : Debit Side - $1,230 Credit Side - = $1,230 (debit)

Dividends : Debit Side - $430  Credit Side - = $430 (debit)

Part 4

<u>Trial Balance as at 30 June</u>

                                                  Debit                 Credit

Cash                                        $17,800

Bank Note                                                         $53,000

Common Stock                                                 $23,000

Equipment                            $58,000  

Supplies                                  $6,300

Accounts Payable                                              $6,300

Service Revenue                                                $7,600

Salaries                                     $1,510

Advertising                                 $330

Accounts Receivables            $4,300

Utility Bill                                  $1,230

Dividends                                   $430

Totals                                    $89,900            $89,900

Explanation:

The Accounting Process starts with recording transactions in the Journals. The Journals are then posted to the Account Affected and the balances of those Accounts are determined. The trial Balance is then prepared by extracting these balance to find the Debit and Credit Totals to check mathematical accuracy.

3 0
2 years ago
The primary difference between variable costing and absorption costing is
IgorLugansk [536]

Answer:

The correct answer is letter "D": in absorption​ costing, fixed manufacturing overhead is a product cost.

Explanation:

Absorption costing or full costing includes all costs related to the production process like the fixed costs. Variable costing, on the other hand, only includes the variable costs from the production. Absorption costing incorporates allocating fixed overhead costs of each unit produced during a certain period.

4 0
3 years ago
Big Box Store has operated with a 30% average gross profit ratio for a number of years. It had $100,000 in sales during the seco
nydimaria [60]

Answer:

c) $20,000.

Explanation:

The computation of the estimated ending inventory is shown below:

We know that

Cost of goods sold = Beginning inventory + purchase made - ending inventory

And, the

Sales - gross profit = Cost of goods sold

$100,000 - $100,000 × 30% = Cost of goods sold

So, cost of goods sold would be

= $100,000 - $30,000

= $70,000

Now the ending inventory would be

$70,000 = $18,000 + $72,000 - ending inventory

$70,000 = $90,000  - ending inventory

So, the ending inventory would be

= $90,000 - $70,000

= $20,000

5 0
2 years ago
Which type of data do researchers collect the personal interviews?
STALIN [3.7K]

Answer:

The correct answer is "Face-to-face interviews".

Explanation:

  • Face-to-face surveys or interviews are an important way of gathering information used throughout survey methodology.
  • Throughout these interviews, research teams are collecting location information from participants across one cooperation or bonding. This method of collecting information seems to be unique or even just highly personalized.
7 0
2 years ago
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