subject
Business, 25.09.2020 01:01 jace9926

Taxpayer Y, who has a 15 percent marginal tax rate, invested $50,000 in a bond that pays 9 percent interest on a yearly basis. Compute Y’s annual net after-tax cash flow from this investment assuming that: a) The interest on the bond is tax-exempt.
b) The interest on the bond is taxable.

ansver
Answers: 1

Another question on Business

question
Business, 21.06.2019 19:40
Michigan mattress company is considering the purchase of land and the construction of a new plant. the land, which would be bought immediately (at t = 0), has a cost of $100,000 and the building, which would be erected at the end of the first year (t = 1), would cost $500,000. it is estimated that the firm's afterminustax cash flow will increase by $100,000 starting at the end of the second year, and that this incremental flow would increase at a 10 percent rate annually over the next 10 years. what is the approximate payback period?
Answers: 3
question
Business, 22.06.2019 19:00
When making broccoli cream soup, the broccoli and aromatics should be a. burned. b. simmered. c. puréed. d. sweated.
Answers: 2
question
Business, 22.06.2019 19:20
Six years ago, an 80-kw diesel electric set cost $160,000. the cost index for this class of equipment six years ago was 187 and is now 194. the cost-capacity factor is 0.6. the plant engineering staff is considering a 120-kw unit of the same general design to power a small isolated plant. assume we want to add a precompressor, which (when isolated and estimated separately) currently costs $13291. determine the total cost of the 120-kw unit. (hint: skip $ and comma symbols)
Answers: 3
question
Business, 22.06.2019 20:40
Aggart technologies is considering issuing new common stock and using the proceeds to reduce its outstanding debt. the stock issue would have no effect on total assets, the interest rate taggart pays, ebit, or the tax rate. which of the following is likely to occur if the company goes ahead with the stock issue? a. the roa will decline.b. taxable income will decline.c. the tax bill will increase.d. net income will decrease.e. the times-interest-earned ratio will decrease
Answers: 1
You know the right answer?
Taxpayer Y, who has a 15 percent marginal tax rate, invested $50,000 in a bond that pays 9 percent i...
Questions
question
Mathematics, 05.06.2021 23:20
question
Social Studies, 05.06.2021 23:20
question
Social Studies, 05.06.2021 23:20
question
English, 05.06.2021 23:20
Questions on the website: 13722367