# Assume that Jose is indifferent between investing in a corporate bond that pays 10 percent interest and a stock with no growth potential that pays an 9.7 percent dividend yield. Assume that the tax rate on dividends is 15 percent. What is Jose's marginal tax rate?a. 47%.b. 37%.c. 32%.d. 15%.e. None of these.

e. None of these.

Explanation:

Step 1. Given information.

Taxable Dividend Yield = 9.7%

Tax rate on Dividend yield=15%

Interest rate=10%

Let Tax rate on Interest=X

Step 2. Formulas needed to solve the exercise.

Interest rate * (1 - x) = taxable dividend yield ( 1 - tax rate on dividend yield)

Step 3. Calculation.

0.10*(1-x)=0.097*(1-0.15)

0.10-0.10x=0.08245

0.10x=0.01755

x=0.01755/0.10

=0.1755

=17.55%

Step 4. Solution.

e. None of these.

## Related Questions

Sorin Inc., a company that produces and sells a single product, has provided its contribution format income statement for January. Sales (3,600 units)\$108,000 Variable expenses 49,680 Contribution margin 58,320 Fixed expenses 44,300 Net operating income\$14,020 If the company sells 4,300 units, its total contribution margin should be closest to: (Do not round intermediate calculations.)

\$69,660

Explanation:

For computing the contribution margin first we have to determine the contribution margin per unit which is shown below:

Contribution margin per unit = Contribution margin ÷ Number of units

= \$58,320 ÷ 3,600 units

= \$16.2

Now if the sales unit is 4,300 so the contribution margin is

= Sales units × contribution margin per unit

= 4,300 units × \$16.20

= \$69,660

Which of the following changes would increase structural unemployment? Select one: a. An increase in the speed that firms and potential workers exchange information
b. A recession caused by a drop in total spending
c. A decrease in the minimum wage
d. Increased globalization that moves the economy from a manufacturing-based economy to a more service-based economy

Option D

Increased globalisation that moves the economy from manufacturing based economy to more service-based economy.

Explanation:

Option D

Increased globalisation that moves the economy from manufacturing based economy to more service-based economy.

As manufacturing will decrease, the number of jobs will decrease drastically because the number of industries will become small.

Jaymes Corporation produces high-performance rotors. It expects to produce 69,000 rotors in the coming year. It has invested \$8,970,000 to produce rotors. The company has a required return on investment of 20%. What is its ROI per unit

\$26

Explanation:

The computation of the ROI per unit is shown below

Required ROI on the total Investment

= Total Investment × Required Rate on Investment

= \$8,970,000 × 20%

= \$1,794,000

So, ROI Per Unit is

= Required Return on investmnt  ÷ Total Rotors

= \$1,794,000 ÷ 69,000

= \$26

Examine the values for depreciation in 2014 and net fixed assets in 2013 and 2014. What was Fincorp gross investment in plant and equipment during 2014?

This question is not complete.It is missing statement of profit or loss and balance sheet for both years,however find attached missing details.

The value of depreciation as shown by the statement of profit or loss in the year 2013 is \$500 while that of 2014 is \$520,the increase by \$200 in 2014 is due to plant and equipment acquired in the year.

The gross investment in plant and equipment in 2014 is \$1320

Explanation:

The gross investment is computed thus

=fixed asset in 2014-fixed asset in 2013+depreciation of 2014

Fixed asset in 2014=\$5800

Fixed asset in 2013=\$5000

depreciation in 2014=\$520

gross investment=\$5800-\$5000+\$520

=\$1320

what do u mean

Explanation:

2014 and 2013, they will both be dif. and its incomplete

A marketing channel is defined as a group of individuals and organizations that ______.(A) takes title to products and resells them.
(B) manages transportation and warehousing functions.
(C) consumes about one-half of every dollar spent on products in the United States.
(D) links producers to other marketing intermediaries.
(E) directs the flow of products from producers to customers.

Option E

Explanation:

In simple words, A marketing channel refers to the individuals, organizations, and practices that are required to complete the sale of commodities from the point of manufacturing to the points of consumption.

It is the manner in which products reach the final-user, the consumer; and is also regarded as a method of delivery. A communication platform is a valuable management tool and is essential to the creation of an efficient and well-prepared marketing strategy.

Thus, from the above we can conclude that the correct option is E.

9. Which of the following is true regarding the Comprehensive Annual Financial Report (CAFR)? A) The CAFR has three main sections: introductory, financial, and statistical. B) Required supplementary Information includes a Budgetary Comparison Schedule for the General Fund and all major special revenue funds that have a legally adopted annual budget

The correct answer is Both of the above (A and B).

Explanation:

The CAFR is made up of a group of financial statements that must be reported to local authorities and are reviewed by AICPA certified auditors. This document contains all the budget information from previous years and those that are projected to be completed within the following year, using simple language in order to achieve an easy understanding of the principles applied in its construction.

The answer is option A) The CAFR has three main sections: introductory, financial, and statistical.

Explanation:

The purpose of the Comprehensive Annual Financial Report (CAFR) is to provide accurate and meaningful information concerning the City's financial condition and performance.

The CAFR consists of three sections: Introductory, Financial and Statistical. The Introductory section orients and guides the reader through the report. The Financial section presents the entity's basic financial statements as well as notes to the statements and the independent auditors' report.