More than 50,000 state and local governments and their agencies borrow money by issuing municipal bonds to build, repair, or improve schools, streets, highways, hospitals, sewer systems, and so on. When the federal income tax law was adopted in 1913, interest on municipal bonds was excluded from federal taxation. As a result, municipal bond investors are willing to accept lower yields than those they can obtain from taxable bonds. As part of your portfolio, you are considering investing $70,000 in bonds. You have the choice of investing in tax-exempt municipal bonds yielding 2.75% or corporate bonds yielding 4% in taxable interest income.   (a)What is the annual interest income (in $) and tax status of the municipal bond investment?       (b)What is the annual interest income (in $) and tax status of the corporate bond investment?     (c) If you are in the 32% marginal tax bracket for federal income taxes and  your state and local taxes on that income amount to an additional 7%, what is the after-tax income (in $) on the corporate bonds?   (d) What is the actual percent yield realized on the corporate bonds after taxes

Investing activities include all of the following except loans made to others and collected.   purchases and sales of another company’s stock.   issuing and repaying debt.   purchases and sales of property and equipment.

Consider the following. My recent marketing idea, the Miracle Algae Growing Kit, has been remarkably successful, with monthly sales growing by 7% every 6 months over the past 4 years. Assuming that I sold 100 kits the first month, how many kits did I sell in the first month of this year? Determine the following values given that FV = PV(1 + i)", where FV and PV are measured in kits and time is measured in 6 month periods. PV = i = n = Solve for FV. (Round your answer to the nearest whole number.) FV = How many kits did I sell in the first month of this year? kits

As part of the settlement for a class action lawsuit, Hoxworth Corporation must provide sufficient cash to make the following annual payments (in thousands of dollars): Year          1          2          3          4         5          6 Payment 190     215      240     285     315     460 The annual payments must be made at the beginning of each year. The judge will approve an amount that, along with earnings on its investment, will cover the annual payments. Investment of the funds will be limited to savings (at 4% annually) and government securities, at prices and rates currently quoted in The Wall Street Journal. Hoxworth wants to develop a plan for making the annual payments by investing in the following securities (par value=$1000) . Funds not invested in these securities will be placed in savings. Security      Current Price      Rate (%)           Years to Maturity 1                     $1055                6.750                            3 2                    $1000…

The annual profit from an investment is $25,000 each year for 5 years and the cost of investment is $75,000 with a salvage value of $45,000. The discount rate (cost of capital) at this risk level is 14%. Based on the given information, the net present value of the investment = $☐ (round your response to the nearest whole number).

urgent

6) a. b. C. d. What is the present value of $15,000 received today, $2,500 received at the end of each of the next six years and $10,000 received at the end of the 7th year, assuming a required rate of return of 4.50% ? $38,143 $16,899.89 $29,990.22 $35,243

Mr. Bingle who is currently 65 yrs. old and in retirement is looking to invest $400,000 (about 1/3 of his retirement assets), and his local banker is offering the following: 1 year CD at 5.00% 5yr CD at 4.75% 10yr CD at 4.50% 20 yr CD at 4.25% Which option would you recommend and why?

Kier Company issued $740,000 in bonds on January 1, Year 1. The bonds were issued at face value and carried a 3-year term to maturity. They had a 5.50% stated rate of interest that was payable in cash on December 31st. Based on this information alone, the amount of interest expense shown on the December 31, Year 1 income statement and the cash flow from operating activities shown on the December 31, Year 1 statement of cash flows would be:     Interest Expense Cash Outflow A. $40,700 zero B. zero $40,700 C. $40,700 $40,700 D. zero zero   Multiple Choice   Choice A   Choice B   Choice C   Choice D