at what % return would a non-taxableinvestment be equivalent to a taxable investment assuming a marginal...
If your taxable investment can yield a 11.31% rate of return and your marginal tax rate is 28% what would be your after-tax earnings? Your Answer: Answer
s Calculation (20%) Table 2.2 Tax-Exempt Yield Equivalent taxable yields corresponding to various tax-exempt yields 2% 3% 4% 5% 1% Marginal Tax Rate 125% 2.50% 3.75% 5.00% 6.25% 20% 30 1,43 2.86 4.29 5.71 7.14 40 1.67 3.33 5.00 6.67 8.33 50 2.00 4.00 6.00 8.00 10.00 Suppose your tax bracket is 40%, would you rather hold a 7% taxable bond or a % tax-free bond? What is the equivalent taxable yield of the 5%tax-free yield? s Calculation (20%) Table...
Marianne is in the 30% marginal tax bracket. For her, a 5% return on a tax-exempt portfolio is equivalent to a 6.5% return on a taxable portfolio. True or FALSE explain, please
with a 28% marginal tax rate, would a tax- free yield of 5.4% or a taxable yeild of 8.5% give you a better return on your savings?
6. You are booking an invoice into you CA project with an accounts payable condition of 1.5/20 Net 60. Assuming you do not have the cash to take the discount would you take a loan within the discount days at an interest rate of 32%? Explain fully using math logic and descriptive words. 7. As a student seeking to graduate with an MBA you may have to decide on investing in projects that yield returns that are taxable and non-taxable....
( 2. Suppose your tax bracket is 28%. Would you prefer to earn a 6% taxable return or a 4% tax-free yield? What is the equivalent taxable yield of the 4% tax-free yield?
What would be the marginal and average tax rates for a married couple with taxable income of $90,000? For an unmarried taxpayer with the same income? Use Table 3.7. (Do not round intermediate calculations. Enter the marginal tax rate as a percent rounded to 1 decimal place. Enter the average tax rate as a percent rounded to 1 decimal place.) a. What would be the marginal tax rate for a married couple with income of $90,000? b. What would be...
Carol, a single TP, earns $75,000 in taxable income and $10,000 in interest from an investment in the City of Chicago bonds (non-taxable). Using the U.S. tax rate schedule: How much federal income tax will she owe? What is her average tax rate? What is her effective tax rate? If Carol earns an additional $40,000 of taxable income, what is her marginal tax rate? What if she had $40,000 of additional deductions instead?
JUDUIT to the problem 1. Page 231 Questions and Problem 1 & Page 232 problems 11 and 12. 2. A Common stock of General Motors closed at $38.16 today 11/07/19 The company paid 50.40 last quarter and the growth rate is expected to be 5.5%. a. What will be the investor's price assuming she has a required rate of 9.5%? b. What would be the yield the yield on the investment based on an annual (4x$0.40) dividend? C. Would she...
Campbell, a single taxpayer, earns $316,000 in taxable income and $7,600 in interest from an investment in State of New York bonds. (Use the U.S. tax rate schedule). Required: a. If Campbell earns an additional $22,000 of taxable income, what is her marginal tax rate on this income? b. What is her marginal rate if, instead, she had $22,000 of additional deductions? (For all requirements, do not round intermediate calculations.) a. Marginal tax rate Marginal tax rate b. Hugh has...