If you expect inflation to be 2 percent next year and you buy a one-year bond paying 5 percent interest, what is your after-tax expected real interest income if the price of the bond is $200 and your tax rate is 40 percent?
A. $0.20
B. $20
C. $10
D. $2
Answer: D
You might also like to view...
Pierre's Ice Cream Company produces ultra-rich ice cream, which it sells in Cleveland, Ohio, and other neighboring places. Last year, its actual return on investment exceeded its target return on investment (ROI) for that fiscal year
The following results were found on its financial statements: Gross revenues: $250,000 Total assets: $500,000 Gross profits: $100,000 Total liabilities: $200,000 Net profits after tax: $ 50,000 Owner's equity: $300,000 What was the actual ROI for Pierre's Ice Cream Company? a. 6.67 percent b. 10 percent c. 22 percent d. 28 percent
______ recognizes that we all are aware of what we contribute and what we receive in return from our roles in work and in life, and that we also compare this ratio of our inputs and outcomes with that of other people.
Fill in the blank(s) with the appropriate word(s).
The purpose of the initial appearance is to establish that probable cause exists
a. True b. False
Knoxville Industries had their supplier design the improved body armor for their new apparel. This level of supplier involvement, known as ________ was sure to result in a pain free season
Fill in the blanks with correct word