User Account

All Pages

What interest rate would a municipal bond have

Assignment Help Accounting Basics
Reference no: EM133027791

Question - Assume that Patrick's marginal tax rate is 30% and his tax rate on dividends is 15%. If a dividend-paying stock (with no growth potential) pays an 8% dividend yield, what interest rate would a municipal bond have to offer for Patrick to be indifferent between the two investments from a cash-flow perspective?

A) 30.00%.

B) 15.00%.

C) 8.00%.

D) 6.80%.

E) None of the choices are correct.

Reference no: EM133027791

Questions Cloud

What is one share of this stock worth to you : Beginning 5 years from now, the dividend is expected to increase by 4.0 percent annually. What is one share of this stock worth to you
What would be reported as cost of goods sold : What would be reported as Cost of Goods Sold on the income statement for the year ending December? 31, 2025 if the perpetual inventory system
What is a fair market price for a company common stock : If investors require a return of 15% to hold a company's common shares, what is a fair market price for a company common stock
Discuss ssekos social entrepreneurship model : Ford Motor Company responds to Ethical Challenges and How has Ford made ethics an important part of its culture?
What interest rate would a municipal bond have : What interest rate would a municipal bond have to offer for Patrick to be indifferent between the two investments from a cash-flow perspective
Compute Greenwood Corporation basic and diluted earnings : Question - Given the following year-end information, compute Greenwood Corporation's basic and diluted earnings per share
What would your account be worth : Future value - If you deposit ?$3,500 today into an account earning an annual rate of return of 11 ?percent, what would your account be worth in 35 years?
Calculate relevant cost to make : The facilities that are used to manufacture the part have no alternative uses. Calculate relevant cost to make
How many units of safety stock should the company maintain : Assuming that occasionally, the company experiences delay in the delivery of Material X, How many units of safety stock should the company maintain

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd