Question
2-Assume that Juanita is indifferent between investing in a corporate bond that pays 10.2% interest and a stock with no growth potential that pays a
2-Assume that Juanita is indifferent between investing in a corporate bond that pays 10.2% interest and a stock with no growth potential that pays a 7.2% dividend yield. Assume that the tax rate on dividends is 15%. What is Juanita's marginal tax rate? (Do not round intermediate computations.)
19.76%
29.88%
40.00%
9.88%
None of these.
3-Jasmine started a new business in the current year. She incurred $28,000 of start-up costs. How much of the start-up costs can be immediately expensed (excluding amounts amortized over 180 months) for the year?
$0
$5,000
$28,000
$2,500
None of these
4-
Assume that Lavonia's marginal tax rate is 20%. If a city of Tampa bond pays 7.6% interest, what interest rate would a corporate bond have to offer for Lavonia to be indifferent between the two bonds?
20.00%
10.60%
9.60%
9.50%.
6.60%
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