If the personal income tax rate is greater than zero, which of the following statements is incorrect?

a. in general, the interest rate on taxable (corporate) bonds must be set higher than the interest rate on tax-exempt (municipal) bonds to produce the same amount of usable (after-tax) income for the investor.

b. in general, not-for-profit corporations are able to issue debt for a lower cost than can for-profit corporations.

c. the after-tax cost to an individual of a $1,000 donation to a not-for-profit hospital would be less than $1,000.

d. the after-tax yield from an investment in a tax-exempt (municipal) bond paying 7 percent would be less than 7 percent.

e. the after-tax yield from an investment in a taxable (corporate) bond paying 7 percent would be less than 7 percent.

R& m chatelaine is one of the largest tax-preparation firms in the united states. it wants to acquire the tax experts, a smaller rival. after the merger, chatelaine will be one of the two largest income-tax preparers in the u. s. market. what should chatelaine include in its acquisition plans? it should refocus its attention from the national to the international market. in addition to acquiring the tax experts, it should also determine the best way to drive independent "mom and pop" tax preparers out of business. chatelaine will need to explain to the federal trade commission how the acquisition will not result in an increase in prices for consumers. chatelaine should enter a price-based competition with its other major competitor to force it out of business and become a monopoly.

Young owners of a sole proprietorship will likely not find financial support available from?

Suppose that a major city’s main thoroughfare, which is also an interstate highway, will be completely closed to traffic for two years, from january 2014 to december 2015, for reconstruction at a cost of $535 million. if the construction company were to keep the highway open for traffic during construction, the highway reconstruction project would take much longer and be more expensive. suppose that construction would take four years if the highway were kept open, at a total cost of $800 million. the state department of transportation had to make its decision in 2014, one year before the start of construction (so that the first payment was one year away). so the department of transportation had the following choices: (i) close the highway during construction, at an annual cost of $267.5 million per year for two years. (ii) keep the highway open during construction, at an annual cost of $200 million per year for four years. now suppose the interest rate is 80%. calculate the present value of the costs incurred under each plan.