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Pachacha [2.7K]
2 years ago
9

An individual actually earned a 4 percent nominal return last year. Prices went up by 3 percent over the year. Given that the in

vestment income was subject to a federal tax rate of 28 percent and a state and local tax rate of 6 percent, what was the investor's actual real after-tax rate of return
Business
1 answer:
jenyasd209 [6]2 years ago
3 0

Answer:

Actual real after tax rate of return is 0.657%

Explanation:

Use fisher method to compute real return:

Real\ return=\frac{1+nominal\ return}{1+inflation}-1

Real\ return = \frac{1.04}{1.03}-1

=0.00971 or 0.971%

Calculate after tax return as shown below:

Federal tax rate is 28% or 0.28 and state tax is 6% or 0.06.

After tax return = 0.00971×(1 - 0.28) ×(1 - 0.06)

                        = 0.00657 or 0.657%

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Zeffer is a small but growing bottling company that competes with large soft drink heavy-hitters. To set itself apart, Zeffer ha
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Answer:

Hispanic

Explanation:

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In this time Hispanics contributed 52% to the 18.9 million population growth in the United States.

Based on this trend Zeffer has decided to develop a line of all-natural soft drinks that are believed to be healthier than typical high-calorie sodas and targeting the Hispanic market will make their product popular rapidly.

3 0
2 years ago
Joe takes a dollar from the cash register every day and does not tell anyone about it. Sara’s cash register is $2 short because
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Well, obviously Sara is the better employee because she's being honest and tells the boss about her mistake. Joe is not a good employee, becuse he is stealing and doesn't tell anyone about it so, your answer is Sara is the better employee. Hope it helps!
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2 years ago
Read 2 more answers
Anna is a 21-year-old full-time college student (she plans on returning home at the end of the school year). Her total support f
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Answer:

Even if Anna's grandparents provided the remaining $14,000 of support for Anna ($34,000 minus $12,000 minus $8,000) they would not be able to claim her as a dependent.

Explanation:

If the grandparents provided $14,000 their contribution to Anna's school fees is not up to half so they cannot claim Anna as an exemption. Anna had $12,000 personal money and $8,000 scholarship, it is crowned that she provided $20,000 by herself.

However since she is under the age of 21 and in college, her parents can claim her.

4 0
2 years ago
As a result of the organizing campaign at Champlain Products, the union obtained signed authorization cards from 41% of the empl
xz_007 [3.2K]

Answer:

Please see explanation below.

Explanation:

The next step is to conduct a secret ballot election which will be supervised by National Labor Relations Board (NLRB) as might be required by the employer-Champlain products inorder to obtain voluntary support from the employees that the union wants to represent. The reason being that the management might decided not to recognize the card checks practise on the basis that a union without a secret ballot election is not reliable hence employees that signed the card might have been intimidated or coerced by the union to do so.

Where the management refuses to recognize the card check that was signed by at least 41% of the employees it wants to represent, management would then request for secret ballot election where employees would be able to vote confidentially without coercion or undue influence from the union or co-workers.

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2 years ago
Rearden Metals is considering opening a strip mining operation to provide some of the raw materials needed in producing Rearden
melomori [17]

Answer:

The correct answer is C.

Explanation:

Giving the following information:

The initial purchase of the land and the associated costs of opening up mining operations will cost​ $100 million today. The mine is expected to generate​ $16 million worth of ore per year for the next 12 years. At the end of the 12th year Rearden will need to spend​ $20 million to restore the land to its original pristine nature appearance.

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To be exact:

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It will take 6 years and 95 days to recover the initial investment.

5 0
2 years ago
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