+1-415-670-9189
info@expertsmind.com
Determine tax bracket after-tax income
Course:- Finance Basics
Reference No.:- EM1350957




Assignment Help
Expertsmind Rated 4.9 / 5 based on 47215 reviews.
Review Site
Assignment Help >> Finance Basics

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?

 




Put your comment
 
Minimize


Ask Question & Get Answers from Experts
Browse some more (Finance Basics) Materials
Discuss thoroughly the process and analyses that one must go through in order to make a sound and analytical RE investment decision. You must discuss these with specific ref
Calculate the financial ratios for the assigned company's financial statements, and then interpret those results against company historical data as well as industry benchmar
Use the historical and projected financial data provided to prepare a pro forma income statement for the year ended December 31, 2010. Use the projected financial data along w
The demand curve and supply curve for one-year discount bonds with a face value of $ 1,000 are represented by the following equations: Bd: Price = - 0.6 Quantity + 1140 Bs: Pr
Suppose a bank customer with €1,000,000 wishes to trade out of euro and into Japanese yen. The dollar-euro exchange rate is quoted as $1.60 = €1.00 and the dollar-yen exchan
Pemberton Corporation bought a machine costing $300,000 that had an estimate useful life of 6-years and residual value of $18,000. The machine is expected to produce 3,525,000
An investment costs $1,548 and pays $138 in perpetuity. If the interest rate is 9%, what is the NPV? (Negative amount should be indicated by a minus sign. Do not round inter
Cost of Capital is one of our last topics in finance. Cost of Capital refers to the cost of raising funds to purchase or build or to borrow. Why do you think this is so impo