Calculation of after tax return
Course:- Finance Basics
Reference No.:- EM1359102

Assignment Help >> Finance Basics

The Omega Corporation has some excess cash that it would like to invest in marketable securities for a long-term hold. Its vice-president of finance is considering three investments (Omega Corporation is in a 35 percent tax bracket and the tax rate on dividends is 15 percent). Which one should she select based on aftertax return: (a) Treasury bonds at a 9 percent yield; (b) corporate bonds at a 12 percent yield; or (c) preferred stock at a 10 percent yield?

Ask Question & Get Answers from Experts
Browse some more (Finance Basics) Materials
A friend tells you that he has a job that pays US $1,500 every month; however, he is spending US $1,900 per month and taking on more credit card debt to meet his monthly bills
1. In 2005 selected automobiles had an average cost of $16,000. The average cost of those same automobiles is now $20,000. What was the rate of increase for these automobiles
Toyota Motor Credit Corp (TMCC) a subsidiary of Toyota Motor offered some securities for sale to the public on March 28, 2008. Why would TMCC be willing to accept such a smal
On the basis of the mentioned information you as a finance manager are asked to provide the following :  Estimate the firms return on capital.  What would be the reinvestmen
The given tables contain financial statements for Dynastatics Corporation. Although the company has not been growing, it now plans to expand and will increase net fixed assets
On September 30, 2000, Mattel®, a major toy manufacturer, virtually gave away The Learning Company®, a maker of software for toys, to rid itself of a disastrous acquisition
A client is 20 years from retirement and wants to invest today for $35,000 retirement annuity beginning one year following his retirement and continuing for 15 years in his r
Find out the net cash proceeds from the disposal of old and new equipment. What is the resale value of new equipment that would make you indifferent about project?