In order to compare the yields on municipal and corporate bonds the investor must restate the yield of either the taxable corporate bond to an after tax basis or the municipal bond to a pretax equivalent because:
A) corporate bonds are tax free.
B) municipal bonds are tax free and investors must compare rates on an equal basis.
C) a municipal bond is typically safer than a taxable corporate bond.
D) such restatements are not necessary for most taxpayers.
B
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Describe sales technology.
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Everything else equal, if stockholders prefer current income to future income (i.e., capital gains), a firm's cost of equity will:
A. decrease if its dividend payout increases. B. decrease if its eliminates all dividend payments. C. decrease if its excess (free) cash increases. D. decrease if management promotes its wishes to restrict ownership in the firm. E. increase if debt restrictions decrease.
Which of the following is the correct order of the steps in formulating a total compensation strategy?
A. Assess the strategy, map the strategy, implement the strategy, and reassess the strategy. B. Assess the strategy, implement the strategy, map the strategy, and reassess the strategy. C. Map the strategy, implement the strategy, assess the strategy, and reassess the strategy. D. Map the strategy, assess the strategy, implement the strategy, and reassess the strategy.
Explain assessment centers. Where do these centers stand in terms of their criterion-related validity?
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