After-tax earnings rate is as follows:-
=Yield*(1-tax rate)
=11.31%*(1-28%)
=8.14%
If your taxable investment can yield a 11.31% rate of return and your marginal tax rate...
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?
You can invest in taxable bonds that are paying a yield of 8.2 percent or a municipal bond paying a yield of 6.75 percent. Assume your marginal tax rate is 21 percent. a. Calculate the after-tax rate of return on the taxable bond? (Round your answer to 2 decimal places. (e.g., 32.16) b. Which security bond should you buy? Rate of return b. The security bond one should buy is es
Your marginal tax rate is: 33% Tax Free Rate 3.00% Taxable rate 5.00% Tax Rate ? Input from above Tax Free ? Input from above Taxable Equivelent ? Compare with abovev Which would you pick and why? ANSWER THE GREEN BOX AND USE THAT TO ANSWER THE QUESTION
Suppose Gary gets 12% return on his investment before tax. If his marginal tax rate is 12% then, what is he actually making after tax (what is the after tax return)? Answer: Check
Suppose Gary gets 5% return on his investment before tax. If his marginal tax rate is 10% then, what is he actually making after tax (what is the after tax return)? Answer: Check
Question 15 1p You can invest in taxable bonds that are paying a yield of 9.6 percent or a municipal bond paying a yield of 7.85 percent. Assume your marginal tax rate is 21 percent. What is the after-tax rate of return on the taxable bond? 6.20% 12.15% 7.58% 9.59% None of these is correct
at what % return would a non-taxableinvestment be equivalent to a taxable investment assuming a marginal tax rateof 40 and atax-free investment is yeilding 6.5 %
Taxable Equivalent Yield What's the taxable equivalent yield on a municipal bond with a yield to maturity of 6.00 percent for an investor in the 28 percent marginal tax bracket? (Round your answer to 2 decimal places.)
Ms. Patty holds a $120,000 investment that pays 7% annual interest. Her marginal tax rate is 30%. Which, if any, of the following three statements is false? If the interest is taxable, Ms. Lenz's annual after-tax cash flow is $5,580 If the interest is tax-exempt, Ms. Lenz's annual after-tax cash flow is $8,400 None of the above is false Ms. Lenz's annual before-tax cash flow from this investment is $8,400 2.) Churchill Inc. must choose between two alternate transactions. Transaction...
( 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?