subject
Business, 08.10.2019 00:00 lilytimpsonx

Ms. z has decided to invest $75,000 in state bonds. she could invest in state a bonds paying 5 percent annual interest or in state r bonds paying 5.4 percent annual interest. the bonds have same risk , the interest from both is exempt from federal income tax. because ms. z is a resident of state a , she would not pay state a's 8.5 percent personal income tax on the state a bond interest, but she would pay this tax on the state r bond interest .ms. z can deduct any state tax payments in the computations of her federal taxable income , and her federal marginal rate is 33 percent. should ms. z invest in the state a or state r bonds?

ansver
Answers: 3

Another question on Business

question
Business, 21.06.2019 14:40
Lohn corporation is expected to pay the following dividends over the next four years: $18, $14, $13, and $8.50. afterward, the company pledges to maintain a constant 4 percent growth rate in dividends forever. if the required return on the stock is 14 percent, what is the current share price?
Answers: 2
question
Business, 22.06.2019 15:30
Calculate the required rate of return for climax inc., assuming that (1) investors expect a 4.0% rate of inflation in the future, (2) the real risk-free rate is 3.0%, (3) the market risk premium is 5.0%, (4) the firm has a beta of 2.30, and (5) its realized rate of return has averaged 15.0% over the last 5 years. do not round your intermediate calculations.
Answers: 3
question
Business, 22.06.2019 16:50
Slow ride corp. is evaluating a project with the following cash flows: year cash flow 0 –$12,000 1 5,800 2 6,500 3 6,200 4 5,100 5 –4,300 the company uses a 11 percent discount rate and an 8 percent reinvestment rate on all of its projects. calculate the mirr of the project using all three methods using these interest rates.
Answers: 2
question
Business, 22.06.2019 17:30
The purchasing agent for a company that assembles and sells air-conditioning equipment in a latin american country noted that the cost of compressors has increased significantly each time they have been reordered. the company uses an eoq model to determine order size. what are the implications of this price escalation with respect to order size? what factors other than price must be taken into consideration?
Answers: 1
You know the right answer?
Ms. z has decided to invest $75,000 in state bonds. she could invest in state a bonds paying 5 perce...
Questions
question
Mathematics, 13.04.2021 01:30
question
Mathematics, 13.04.2021 01:30
question
Mathematics, 13.04.2021 01:30
question
Mathematics, 13.04.2021 01:30