Provide an explanation of the four points of making a comparison of investing returns on an after-tax basis
What will be an ideal response?
Answer: The tax rate we should be concerned with is the marginal tax rate, because it is the rate we pay on the next dollar of earnings. Check out tax-free investments, which become more attractive as your marginal tax bracket increases. Investigate investments made on a tax-deferred basis, which means the investment grows free of taxes until you liquidate the investment.
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Karl and Grady are managers of two product lines for Brewster Company. One of them is a candidate for promotion based on performance. Using the data below, determine who had the better performance using performance measures such as net income, profit margin, and return on investment. Show your calculations and support your answer.?KarlGradyRevenue....................$412,000$450,000Costs........................380,000411,000Average Assets.........400,000600,000
What will be an ideal response?
If annual demand increases by 100%, the average inventory held in a system governed by the EOQ model is:
A) increased 100%. B) decreased by 100%. C) decreased by 50%. D) increased by 40%.
During _____, both the demand for money and the rate of inflation tend to fall, which prompts the Fed to increase the money supply, and as a result, interest rates decline.?
A. ?expansions B. ?a fiscal deficit C. ?recessions D. ?economic booms E. ?a foreign trade deficit
Vannorman Corporation processes sugar beets in batches. A batch of sugar beets costs $78 to buy from farmers and $18 to crush in the company's plant. Two intermediate products, beet fiber and beet juice, emerge from the crushing process. The beet fiber can be sold as is for $25 or processed further for $16 to make the end product industrial fiber that is sold for $57. The beet juice can be sold as is for $39 or processed further for $22 to make the end product refined sugar that is sold for $84. How much profit (loss) does the company make by processing one batch of sugar beets into the end products industrial fiber and refined sugar rather than not processing that batch at all?
A. ($32) B. $7 C. $39 D. ($134)