A 10-year corporate bond has an annual coupon of 9 percent ($45 paid semi-annually) and a price of $1,033.24, while a 10-year municipal bond has an annual coupon of 5 percent ($25 paid semi-annually) and a price of $925.61. Given this information, determine what your tax rate must be so that both of these bonds have the same after-tax yield. 30.23% 26.83% 29.41% © 27.71% 0 28.57%
Answers
The tax rate must be 26.26% so that both bonds have the same after-tax yield. Rounding to two decimal places, we get 26.83% (option B).
Given information:
Annual coupon rate of a corporate bond = 9%
Amount of coupon paid semi-annually = $45
Price of corporate bond = $1,033.24
Annual coupon rate of municipal bond = 5%
Amount of coupon paid semi-annually = $25
Price of municipal bond = $925.61
Let's determine the pre-tax yield for both bonds.
Yield of corporate bond:
Yield = coupon amount ÷ bond price
Coupon amount = ($45 × 2) = $90
Yield = $90 ÷ $1,033.24 ≈ 0.0872 = 8.72%
Yield of municipal bond:
Yield = coupon amount ÷ bond price
Coupon amount = ($25 × 2) = $50
Yield = $50 ÷ $925.61 ≈ 0.0540 = 5.40%
Now let's determine the after-tax yield for both bonds.
After-tax yield of corporate bond:
After-tax yield = pre-tax yield × (1 − tax rate)
Given, the tax rate be t.
After-tax yield = 8.72% × (1 − t)
After-tax yield of municipal bond:
After-tax yield = pre-tax yield × (1 − tax rate)
After-tax yield = 5.40% × (1 − t)
We know that after-tax yield for both bonds is equal. Therefore, we can equate both equations and solve for the tax rate.
8.72% × (1 − t) = 5.40% × (1 − t)
Simplify and solve for t.
8.72% − 8.72%t = 5.40% − 5.40%t
8.72%t − 5.40%t = 8.72% − 5.40%t
3.32%t = 8.72%
t = 8.72% ÷ 3.32%
t ≈ 2.626 = 26.26%
Hence, the tax rate must be 26.26% so that both bonds have the same after-tax yield. Rounding to two decimal places, we get 26.83% (option B).
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Related Questions
The blank is the the minimum amount of your bill you must pay each month.
Answers
minimum payment
the least amount of money that must be paid at the end of a month
every sunday, mariana and hundreds of other shoppers visit home pro, a home improvement supply store, to buy supplies for their home improvement projects. these shoppers are ________ of home pro.
Answers
Answer:
thse shoppers are customers of hine pro
Explanation:
because they shop there every sunday
The every Sunday, Mariana, and hundreds of other shoppers visit home pro, a home improvement supply store, to buy supplies for their home improvement projects. These shoppers are customers of home pro.
What is customers?The term customer refers to the purchased the goods and the services, The customer is to fulfill the needs and the wants as the exchange of the money. The customer is the receiving the information of the product with the help of customer.
According to the Mariana, and hundreds of other shoppers visit home pro as the main reason was the improvement on the supply as the day by day to the supplies. The shoppers are customers of home pro. The shoppers are the maintain the relation of the customer to the large level of the sales.
As a result, the shoppers are customers of home pro.
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Please HELPPP
What accounts does Lillie T. Lane have open at this time?
O One mortgage
O One mortgage and one credit card
O One mortgage and two credit cards
One mortgage, two credit cards, and one bank account
Answers
Based on the information provided, it appears that the Lillie T. Lane has at least one mortgage account and either one or two credit card accounts. Additionally, they have a bank account.
If Lillie T. Lane only mentioned having one credit card in addition to their mortgage, then they have two open accounts: one mortgage and one credit card. However, if they mentioned having two credit cards in addition to their mortgage, then they have three open accounts: one mortgage and two credit cards. Having multiple credit cards can be beneficial for building credit and earning rewards, but it's important to use them responsibly and pay them off in full each month to avoid accumulating debt and damaging credit scores. Finally, having a bank account is essential for managing personal finances. It allows for easy access to funds and provides a means of paying bills and transferring money. It's important to choose a bank account with low fees and convenient features that suit individual financial needs.
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You are selecting a new dishwasher. You do about 150 loads per year. The less efficient model uses 9 gallons per load. The more efficient model uses 6 gallons per load. The price of water is $0.75 per 1,000 gallons. How much money will you save on water if you select the more efficient model
Answers
Answer:
150 loads at 9 gallons per load = 1,350 gallons
150 loads at 6 gallons per load = 900 gallons
The difference between 1,350 and 900 gallons is 450 gallons.
450/1000 = 45%
IF YOU DONT HAVE THAT ANSWER UP IT = $0.34
Please help I'm about to fail my class and i will be grounded for life, 100 pts for it! its financial literacy
Part One–Research
Imagine you bought 100 shares of stock three years ago and are selling it today. Select a company and research its stock prices. You can start with websites like Nasdaq and Fidelity. Determine the stock's price three years ago, or the purchase price, and its price today, or the selling price.
Part Two–Determine the Real Return
Calculate the real return of your stock investment using the following information:
Purchase price of 100 shares of stock
Selling price of 100 shares of stock
10% tax rate
3% inflation rate
2% administrative fee on the selling price of the stock
Part Three–Evaluate
Analyze your research and calculations, and answer the following questions:
What company did you select to buy stock in? Why did you select the company?
Consider the real return of the stock investment. Do you consider it a wise investment? Why or why not?
Answers
1. I imagine buying 100 shares of Amazon.com Inc. on January 3, 2020, when the stock price was $93.75, investing $9,375.
Today, October 31, 2022, the stock price of Amazon.com Inc. is $102.44.
2. The real return on my investment in Amazon.com Inc was a net loss of 7.12% or $667.60.
3. The company I selected to buy its stock three years ago was Amazon.com Inc.
4. I decided on Amazon.com Inc., hoping to earn spectacular returns since it is a multinational technology company.
5. When I consider the actual return on the stock investment in Amazon.com Inc., I think it was an unwise investment.
6. The investment returned a negative real value because I realized less than I initially invested; I actually lost about $667.60 overall.
What is the stock investment?Stock investment is the purchase of shares for an ownership interest in a publicly-listed company.
The investor makes the investment with the hope that the investee will grow and perform well over some period, enabling the investor to earn some real returns (in the form of dividends and capital appreciation).
Purchase of 100 shares Jan. 3, 2020 = $9,375 (100 x $93.75)
Sales of 100 shares Oct. 31, 2022 = $10,244 (100 x $102.44)
Tax (10%) = $1,024.40 ($10,244 x 10%)
Inflation (3%) = $307.32 ($10,244 x 3%)
Administration fee on sales (2%) = $204.88 ($10,244 x 2%)
Real Returns in dollars = $8,707.40 ($10,244 - $1,024.40 - $307.32 - $204.88)
Loss on returns = $667.60 ($8,707.40 - $9,375)
Loss percentage = 7.12% ($667.60/$9,375 x 100)
Unfortunately, Amazon.com Inc. did not pay any dividends during the period of my investment, and I really lost funds to taxes, inflation, and administration fees when I sold it.
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At what stage of the target market selection process is management likely to investigate whether the organization has sufficient financial resources, managerial skills, employee expertise, and facilities to compete effectively in selected segments
Answers
Answer:
Develop market segment profiles
Although marketers may initially believe certain segments are attractive, a market segment profile may unveil new information that makes a segment less attractive than thought.
Explanation:
why do your feet stink
Answers
Answer:
feet become smelly if sweat soaks into shoes and they don't dry before you wear them again. Bacteria on the skin break down sweat as it comes from the pores.
What combination of changes would most likely decrease the equilibrium quantity?A. when supply increases and demand decreasesB. when demand increases and supply decreasesC. when demand decreases and supply decreasesD. when supply increases and demand increases
Answers
The combination of changes that would most likely decrease the equilibrium quantity is Option C: when demand decreases and supply decreases.
This is because when demand decreases, it means that consumers are less willing to buy a good at any given price. This leads to a shift to the left of the demand curve.
Similarly, when supply decreases, it means that producers are less willing to produce a good at any given price. This leads to a shift to the left of the supply curve.
As a result, the equilibrium quantity will decrease as there are fewer goods being produced and fewer consumers willing to buy them at any given price.
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Elsie sold her car to a Carlson who responded to her online ad. Carlson paid Elsie with a cashier's check. Two days later, Elsie went to the store to cash the check. She was shocked when the bank teller said that the cashier check was fake.
Answers
Elsie is a victim of counterfeit cashier's checks. Before finalizing the sale, she should think about bringing a legal lawsuit against Carlson and verify the validity of the check.
What happens if a fraud check is checked?When a check is discovered to be fraudulent, your bank account will often be debited for the amount. Even worse, the bank might charge you extra money to process a bogus check. Any money i sent to the con artist will be lost.
The severity of check frauds.Check fraud misdemeanor offenses often carry criminal fines and up to a year of prison. Depending on the severity of the act and the applicable state legislation, felony charges can carry fines of thousands of dollars and jail terms of up to several years.
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A bond that makes no coupon payments and is initially priced at a deep discount is called a __________ bond. group of answer choices municipal zero coupon treasury junk
Answers
A bond that makes no coupon payments and is initially priced at a deep discount is called a "zero coupon bond."
Zero coupon bonds are also known as "discount bonds" because they are issued and initially traded at a price significantly lower than their face value or redemption value. Unlike regular bonds that pay periodic interest or coupon payments, zero coupon bonds do not make any coupon payments during their term.
The unique characteristic of zero coupon bonds is that they are issued at a discount to their face value, meaning investors purchase them for less than the amount they will receive at maturity. The discount represents the interest that accrues over the bond's life, and the bondholder receives the face value of the bond at maturity.
Since zero coupon bonds do not provide periodic interest payments, their return to investors comes from the difference between the purchase price and the face value upon maturity. This allows investors to benefit from compounding interest, as the bond's price appreciates over time, moving towards its face value.
Zero coupon bonds are issued by various entities, including governments, municipalities, corporations, and financial institutions. While the term "municipal" is commonly associated with bonds issued by local governments, it does not specifically refer to zero coupon bonds. Similarly, "treasury" bonds are issued by the government and can include zero coupon bonds, but not all treasury bonds are zero coupon bonds. "Junk" bonds, on the other hand, refer to bonds that are rated below investment-grade due to their higher default risk and are not necessarily zero coupon bonds.
Therefore, the correct answer is "zero coupon."
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What you don’t want to do when using job boards is __________________ endlessly. To prevent that from happening, you should first create a __________________ describing you, so that recruiters can find you. You should also use the platform’s features to set up __________________, using filters for the types of jobs you’re interested in. The alerts will notify you when there’s a potential match. Although job boards are by nature impersonal, you should aim to make personal connections by introducing yourself to the __________________ for an open role or find someone you already know at the company who can introduce you. If there’s a company you’d love to work for that is hiring in other areas, it can’t hurt to reach out, unsolicited, and see if they might be hiring for your role soon. And any time you upload a resume, be sure it is __________________ and tailored toward the job posting itself.
Answers
Make connections with both new and old individuals to locate your future career. In fact, networking is the greatest way to get a job, according to magazines like Payscale, The Balance, SHRM, The Muse, and others.
How can you utilize job boards to discover your next job in these 6 clever ways?Make connections with both new and old individuals to locate your future career. In fact, networking is the greatest way to get a job, according to magazines like Payscale, The Balance, SHRM, The Muse, and others.
There are appropriate and inappropriate methods to utilize traditional job boards, but this does not imply that job searchers shouldn't use them in their search.
The following are six sage ways to use job boards:
Create a profile- Having a profile set up enables recruiters to find you and get in touch with you for interviews.Create alerts- Don't waste time poring over job advertisements to find the one you should apply for.Introduce yourself out front.- By getting in touch with the hiring manager directly by phone or email, you can reduce your chances of being overlooked by HR.Find someone you can introduce to others.- Make contact with anyone you know who may be able to put you in touch with a contact at the firm you want.Post a résumé that is brand- and keyword-rich- Make sure your resume is "keyword rich" before applying for a position via a job posting. Use words and phrases that are relevant to the position and field for which you are applying."Fire is where there is smoke,"- Consider how recruiting in your immediate region may be impacted if you observe hiring activities at a firm.Learn more about job advertisements: https://brainly.com/question/18311790
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When it is liquidated, a business has assets of $500 cash, $800 of liabilities and $400 common stock and ($700) deficit in retained earnings. based on this information, ______.
Answers
When it is liquidated, a business has assets of $500 cash, $800 of liabilities and $400 common stock, and (a $700) deficit in retained earnings. based on this information, Creditors will receive $500, and owners will receive zero. This is further explained below.
What is liquidation?Generally, Liquidation is the process in accounting by which a company is brought to an end in Canada, United Kingdom, United States, Ireland, Australia, New Zealand, Italy, and many other countries. The assets and property of the company are redistributed.
In conclusion, When it is finally put out of business, a company has $500 in cash on hand, $800 worth of obligations, $400 worth of common stock, and a deficit of $700.00 in retained profits. On the basis of this information, creditors will be paid a total of $500, while owners will get nothing.
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Where is the row selector located in Datasheet view?
above the top row of data
below the last row of data
to the left of the leftmost data
to the right of the rightmost data
Answers
Answer:
to the left of the leftmost data
Explanation:
A database management system (DBMS) can be defined as a collection of software applications that typically enables computer users to create, store, modify, retrieve and manage data or informations in a database. Generally, it allows computer users to efficiently retrieve and manage their data with an appropriate level of security.
A Datasheet view is simply the rows and columns of data in a table that are being displayed in database software application such as Microsoft Access and Excel.
In DBMS, rows are numbered numerically as 1, 2, 3, 4, 5, etc. from top to bottom while columns are labeled alphabetically as A, B, C, D, E, etc. from left to right. Thus, a row is the horizontal arrangement of cell while column is the vertical arrangement of cell in a spreadsheet (table of cells).
Generally, the row selector is located to the left of the leftmost data in Datasheet view.
Answer:
c
Explanation:
Most new jobs in the United States will be in the a manufacturing industries:
b. goods-producing industries
C. service-producing industries
d. agriculture-producing industries
Please select the best answer from the choices provided
Α
B
С
D
Answers
Answer:
d agriculture-producing industries
Most new jobs in the United States will be in manufacturing industries service producing industries. The correct option is c.
In the United States, manufacturing is an important economic sector. The United States is the world's third-biggest manufacturer (after the People's Republic of Chine and the European Union), with a record high real output of $2.00 trillion (adjusted for inflation in 2009 dollars) in Q1 2018, significantly above the $1.95 trillion peak before the Great Recession in 2007.The manufacturing industry in the United States employed 12.35 million people on December 2016 versus 12.56 million in December 2017, a 1.7% rise.
Manufacturing, while still a significant portion of the US economy, contributed less to GDP in Q1 2018 than the 'Finance, insurance, real estate, rental, other leasing' sector, the 'Government' sector, or the 'Professional and business services' sector.
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state law of diminishing returns
Answers
Answer:
see below
Explanation:
The law of diminishing marginal returns indicates that in every production process, adding one more input while holding the others constant will result in the overall decrease in output.
According to this law, adding one more production unit diminishes the marginal returns, and the average production cost increases. Marginal returns refer to the benefits associated with the production of an extra unit.
The gain derived from the use of more input while keeping all other factor constant decreases as production increases. For example, employing more workers while all other variables remain constant will result in reduced labor productivity.
Consider the company database which keeps track of a
company’s employees, departments and projects:
The company is organised into departments. Each
department has a unique name, unique number and p
Answers
The company database is designed to manage information about employees, departments, and projects within a company. Each department is characterized by a unique name and number, serving as identifiers. The database serves as a centralized repository for organizing and accessing data related to these entities.
In more detail, the database includes tables or collections for employees, departments, and projects. The employees table stores information such as employee ID, name, position, department affiliation, and contact details. The departments table maintains records of department ID, name, and other relevant information. The projects table contains data about project ID, name, assigned employees, deadlines, and progress.
By structuring the data in this manner, the company can efficiently track employees, their respective departments, and the projects they are involved in. This allows for effective management of resources, project assignments, and collaboration within the organization. The database enables easy retrieval of information, such as finding all employees within a specific department or determining which projects are currently in progress.
Overall, the company database plays a crucial role in maintaining an organized and efficient system for managing employee, department, and project information. It provides a foundation for various business operations and decision-making processes within the company.
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the basis of dave needlemann's home is $105,000, and the fair market value is now $520,000. he plans to sell his home and purchase a condominium in arizona for $360,000. broker fees for the sale should be $26,000. using these figures, which of the following amounts is his taxable gain?
Answers
The amount of taxable gain will be $389,000.
This calculation is done by subtracting the basis from the fair market value of his home, then subtracting the costs of selling the house and buying a new condominium.
What is Dave Needleman's taxable gain? Dave Needleman's taxable gain is $389,000.The formula to calculate taxable gain is: Taxable gain = Fair market value of the property - Selling cost - Basis Dave Needleman's basis = $105,000Fair market value = $520,000Cost of the new condominium = $360,000Broker fees = $26,000First, we have to calculate the amount that Dave Needleman earned from the sale of his house:$520,000 - $26,000 - $105,000 = $389,000This is Dave Needleman's taxable gain.
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PLEASE HELP!! I WILL GIVE BRAINLIEST!!!
Your manager has been asked to speak to a community group about an upcoming development project that will be demolishing an old mall and building a mixed-use space with apartments, retail, and office space—a topic that has created some controversy in the community. She’s asked for your help in putting together her presentation. Do you think that a live or virtual presentation would be most effective? Why? What types of multimedia elements do you think would be most engaging? Why?
Answers
Answer:
use both the photos to help with the anwer it cut the photo so you have to go back and forth for the anwer
An emergency fund should NOT be used for… repairing your laptop that you use for homework. a sudden health issue that needs care. a last minute school trip. fixing a blown tire on your car that you use to get to work.
Answers
An emergency fund should NOT be used for a last minute school trip. Option 3
What should the emergency fund be used for?An emergency fund is typically intended to cover unexpected and urgent expenses that could not have been anticipated or budgeted for in advance. It is important to use your emergency fund wisely and not to deplete it for non-essential expenses.
Based on that, it is generally not recommended to use your emergency fund for a last-minute school trip or repairing your laptop that you use for homework, as these expenses are not urgent or unexpected.
On the other hand, using your emergency fund to cover a sudden health issue that requires care or fixing a blown tire on your car that you use to get to work can be considered legitimate uses of the fund, as they are unforeseen and necessary expenses.
It is important to have a clear understanding of what constitutes an emergency and to use your emergency fund accordingly to ensure that it remains available to cover truly urgent and unforeseen expenses.
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Answer:
C. a last minute school trip
Explanation:
What is the difference between a planned market economy and a mixed market economy?
Answers
Answer:in centrally planned economy market the means of production are predominantly owned by the state while in mixed economy the means of production are owned and controlled by both government and private persons. It is a mixture of planned and free enterprises
Explanation:
A korean steel company produces steel in the united states, with some of its steel being exported to other nations and some of it being sold within the united states. If the prices of this steel increase, then.
Answers
If the prices of this steel increase, then the GDP deflator and CPI will both increase.
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Suppose Congress changed the tax laws so that Berndt's depreciation expenses doubled. No changes in operations occurred. What would happen to reported profit and to net cash flow
Answers
Suppose Congress changed the tax laws so that Berndt's depreciation expenses doubled. No changes in operations occurred. What would happen to reported profit and to net cash flow taxable income would fall to zero, taxes would be zero, and net cash flow would rise.
An asset loses value over time as a result of use, damage, or obsolescence. Depreciation is the measurement for this decline. Description: A loss in an asset's value, or depreciation, can also be brought on by other reasons like bad market conditions, etc.
The base of an income tax system is referred to as taxable income. In other words, the amount of revenue that was subject to taxation. In general, it comprises all or a portion of the items of income and is lessened by costs and other deductions.
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Assume that a certain business has $1,000 worth inventory, $1,000 cash in bank, and $10,000 receivable from customers in three months. Further, the business needs to pay a short-term loan worth $5,000 in less than six months. What might be the working capital requirement of this business?
A.
$5,000
B.
$6,000
C.
$7,000
D.
$8,000
E.
$12,000
Answers
Answer:
A. $5,000
Explanation:
Plato
The working capital requirement of this business is $5,000. Thus, option A is correct.
What is working capital?A financial term known as working capital (WC) measures the operating liquidity that is accessible to a company, organization, or other organization, including governmental agencies.
Working capital is seen as a component of operational capital, along with fixed assets like plant and equipment. Current assets are equal to gross working capital. Current assets less Current Liabilities equals Working Capital. An entity has a working capital deficiency, also known as a working capital deficit and negative working capital, if current assets are fewer than current liabilities. Despite having assets and profits, a business may lack liquidity if its assets cannot be quickly transformed into cash.
Therefore, we can conclude that option A is correct.
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1. What are some things that the study of economics is not?
Answers
There are 150 people in one group and 120 in another. What would a common factor of 150 and 120 tell you about the ituation?
Answers
The response to this query is 30. The components of 120 are 1, 2, 3, 4, 5, 6, 8, 10, 12, 15, 20, 24, 30, 40, 60,
and respectively 1, 2, 3, 5, 6, 10, 15, 25, 30, 50, 75, 150. Therefore, the greatest common factor between 120 and 150 is 30.
The least common multiple between 120 and 150 can be found in what way?
When primary elements are multiplied by their corresponding highest power, like in the case of 23 31 52 = 600, the LCM of 120 or 150 could be found. As a result, 600 is indeed the Lowest common factor of 120 & 150 using prime factorization.
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a production possibilities frontier is bowed outward when question 18 options: the more resources the economy uses to produce one good, the fewer resources it has available to produce the other good. an economy is self-sufficient instead of interdependent and engaged in trade. the rate of tradeoff between the two goods being produced is constant. the rate of tradeoff between the two goods being produced depends on how much of each good is being produced.
Answers
A production possibilities frontier is bowed outward D. The rate of tradeoff between the two goods being produced depends on how much of each good is being produced.
A production possibilities frontier (PPF) is a graphical representation of the possible combinations of two goods that an economy can produce, given its available resources and technology. The shape of the PPF reflects the opportunity costs associated with producing the goods. When the PPF is bowed outward, it indicates that the opportunity cost of producing one good increases as more of that good is produced. This is because resources are not perfectly substitutable between the two goods, and their efficiency may differ when producing one good over the other.
As the economy shifts its resources from one good to the other, the opportunity cost of producing additional units of the first good increases. This reflects the concept of increasing opportunity costs, which arises due to the specialization of resources and their differing efficiencies in producing the goods.
In conclusion, a production possibilities frontier is bowed outward when the rate of the tradeoff between the two goods being produced depends on how much of each good is being produced, as it reflects increasing opportunity costs and resource specialization. Therefore, the correct option is D.
The question was incomplete, Find the full content below:
a production possibilities frontier is bowed outward when question 18 options:
A. the more resources the economy uses to produce one good, the fewer resources it has available to produce the other good.
B. an economy is self-sufficient instead of interdependent and engaged in trade.
C. the rate of tradeoff between the two goods being produced is constant.
D. the rate of tradeoff between the two goods being produced depends on how much of each good is being produced.
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If the expected dividend in 1 year is $2.58 per share, g (which is constant) = 4.0%, and the current stock price is $24.00 per share, what is the stock’s expected dividend yield for the coming year?
a. 4.00%
b. 10.40%
c. 9.30%
d. 10.75%
Answers
The correct option is d. The stock's expected dividend yield for the coming year is 10.75%.
The dividend yield is calculated by dividing the expected dividend per share by the current stock price and then multiplying by 100 to express it as a percentage. In this case, the expected dividend in 1 year is $2.58 per share, and the current stock price is $24.00 per share.
Dividend Yield = (Expected Dividend / Stock Price) * 100
= ($2.58 / $24.00) * 100
= 0.1075 * 100
= 10.75%
Therefore, the stock's expected dividend yield for the coming year is 10.75%.
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The stock's expected dividend yield for the coming year is d. 10.75%. Expected dividend in 1 year = $2.58 per shareg (which is constant) = 4.0%Current stock price = $24.00 per share
The correct answer is d. 10.75%
We can use the formula to calculate the stock's expected dividend yield,Dividend yield = (Expected dividend / Current stock price) × 100We can substitute the values in the formula as follows:Dividend yield = ($2.58 / $24.00) × 100Dividend yield = 0.1075 × 100Dividend yield = 10.75%, The dividend yield ratio is the ratio between the current dividend of the company and the company's current share price, this represents the risk inherently involved in investing in the company.
Therefore, the stock's expected dividend yield for the coming year is 10.75%, which is option (d).
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what are recommended practices for documenting your research sources?
Answers
The recommended practices for documenting your research sources are to keep track of the author, title, publication date, and page numbers of each source you use, and to use a consistent citation style such as MLA or APA.
When conducting research, it is important to properly document your sources in order to give credit to the original authors and avoid plagiarism. Here are some recommended practices for documenting your research sources:
Keep track of the author, title, publication date, and page numbers of each source you use. This will help you create accurate citations and locate the source again if you need to reference it later.
Use a consistent citation style such as MLA (Modern Language Association) or APA (American Psychological Association). These styles provide guidelines for how to format your citations and can be found in style guides or online.
Include in-text citations when referencing a source within your paper. This typically includes the author's last name and the page number where the information was found.
Create a bibliography or works cited page that lists all of the sources you used in your research. This should include the author's name, title of the work, publication information, and date of publication.
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Holland Company paid Luxembourg Company for merchandise with a $6,400, 90-day, 8% note dated May 10. If Holland Company pays the note at maturity, what entry should be made at that time?
Answers
When Holland Company pays the note at maturity, the following entry should be made: Debit: Notes Payable - Luxembourg Company $6,400
Debit: Interest Expense $128 ($6,400 * 8% * 90/360) Credit: Cash $6,528
The Notes Payable account is debited to decrease the liability and remove the outstanding note from the company's books. The Interest Expense account is debited to record the accrued interest on the note for the 90-day period. Finally, the Cash account is credited to reflect the payment made by Holland Company to Luxembourg Company, including both the principal amount of $6,400 and the accrued interest of $128.
This entry ensures that the outstanding note is settled, and the appropriate interest expense is recorded in Holland Company's financial records.
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The city of waterville applied for a grant from the state government to build a pedestrian bridge over the river inside the city's park. On may 1, the city was notified that it had been awarded a grant of up to $200,000 for the project. The state will provide reimbursement for allowable expenditures. On may 5, the special revenue fund entered into a short-term loan with the general fund for $200,000 so it could start bridge construction. During the year, the special revenue fund expended $165,000 for allowable bridge construction costs, for which it submitted documentation to the state. Reimbursement was received from the state on december 13.
Answers
Answer and Explanation:
The journal entries are shown below:
For May 1
No Entry Required as eligibility should be completed before recognition.
For May 5
Cash $200,000
To Inter fund Loans Payable-Current $200,000
(Being cash is recorded)
During the year
Expenditure $165,000
To Voucher Payable $165,000
(being expenditure is recorded)
Due from State Government $165,000
To Revenues $165,000
(Being revenue is recorded)
On Dec 13
Cash $165,000
To Due from State Government $165,000
(being cash is recorded)
On Dec 31
Revenues $1165,000
To Expenditure $165,000
(being closing entry is recorded)
And other entries are not added as the balance of $35,000 is not fulfilled the eligibility
