Determine tax bracket after-tax income

Reference no: EM1350957

Mr. Smith is in the 30% tax bracket. He earns $50,000 per year.

What is his tax bracket after-tax income? 50000 x 0.60 = (1-0.40 = 0.60)

50000 x 0.60 = 30000.00

Mr. Smith has two investment opportunities:

a. Megacorp, a for-profit healthcare company offering a bond at 8%
b. Good Neighborcare, a not for profit healthcare compay offer a tax exempt bond at 5%.

Which investment will yielf the greatest after tax financial return?

0.08 x $100 = $8

$8 x (1 - 40

What is the rate for Good Neighborcare bond that would give Mr. Smith the same after tax return as Megacorp bond?

Reference no: EM1350957

Questions Cloud

Sec ethics and compliance of microsoft : Identify the processes of Microsoft organization uses to comply with Sec regulations.

Different types of audits that can be performed : What are the different types of audits that can be performed? Identify and briefly describe one...there are several so several students can respond to this question with a unique answer.

Physical-sensory and perceptual development : What are some things that you read about physical, sensory and perceptual development that you could share with your friend? What about cognitive development?

Procedures for initial planning of financial statement audit : Which of the following procedures would an auditor most likely include in the initial planning of a financial statement audit?

Determine tax bracket after-tax income : Mr. Smith is in the 30 percent tax bracket. He earns $50,000 per year. Determine the rate for Good Neighborcare bond that would give Mr. Smith the same after tax return as Megacorp bond?

Conducting financial audit and fraud audit : Discuss the key difference between conducting a financial audit and a fraud audit, and the related level of responsibility of the auditing firm.

Stages of emotional-intellectual and psysiological : I need help summarize stages of emotional, intellectual, psysiological, and social development of middle child hood children.

Make an equation for the number of cups sold : Assume you had a lemonade stand, and when you charge $1 per cup pf lemonade you sell 60 cups. But when you raise the price to $1.50 you only sell thirty cups.

Forward style and employee policy memo : Write a memo to Forward Style Inc. management to explain which of their offered benefits are required by law and which of the benefits are being used to attract employees.

User Account

All Pages