Business, 02.12.2021 01:30, 21cassitsh
The Omega Corporation has some excess cash it would like to invest in marketable securities for a long-term hold. Its Vice-President of Finance is considering three investments: (a) Treasury bonds at a 11 percent yield; (b) corporate bonds at a 14 percent yield; or (c) preferred stock at an 12 percent yield. Omega Corporation is in a 40 percent tax bracket and the tax rate on dividends is 10 percent.
Required:
a. Compute the after-tax yields for the three investment options. (Do not round intermediate calculations. Input your answers as a percent rounded to 2 decimal places.)
b. Which one of the three investments should she select based on the after-tax yields?
Answers: 1
Other questions on the subject: Business
Business, 22.06.2019 03:00, AllyJungkookie
In the supply-and-demand schedule shown above, at the lowest price of $50, producers supply music players and consumers demand music players.
Answers: 2
Business, 22.06.2019 20:20, jennybee12331
Precision aviation had a profit margin of 6.25%, a total assets turnover of 1.5, and an equity multiplier of 1.8. what was the firm's roe? a. 15.23%b. 16.03%c. 16.88%d. 17.72%e. 18.60%
Answers: 2
Business, 22.06.2019 21:00, QueenMiah16
Sue peters is the controller at vroom, a car dealership. dale miller recently has been hired as the bookkeeper. dale wanted to attend a class in excel spreadsheets, so sue temporarily took over dale's duties, including overseeing a fund used for gas purchases before test drives. sue found a shortage in the fund and confronted dale when he returned to work. dale admitted that he occasionally uses the fund to pay for his own gas. sue estimated the shortage at $450. what should sue do?
Answers: 3
Do you know the correct answer?
The Omega Corporation has some excess cash it would like to invest in marketable securities for a lo...
Questions in other subjects:
English, 12.03.2020 04:07
History, 12.03.2020 04:09
English, 12.03.2020 04:10
Mathematics, 12.03.2020 04:10
