Tax equivalent yield Study guides, Class notes & Summaries

An investor purchased and then sold a security eight months later for a gain. This gain is considered to be a short-term gain, and it will be taxed at a more favorable rate than long-term gains. Positions closed within 12 months or less are considered short term. When a gain is realized, it will be taxed at the same rate as the taxpayer's other ordinary income. By contrast, a long-term capital gain is taxed at a favorable long-term rate. If the dollar price of a municipal bond is 101...

Accounting Rate of Return - Answer Average Profit/Average investment Internal Rate of Return - Answer a + NPVa/NPVa-NPVb x (b-a) Money cost of capital - Answer (1 + money coc) = (1 + real coc%) x (1 + inflation %) Equivalent annual cost (EAC) - Answer PV of 1 cycle/AF^n of cycle Profitability index (for divisible projects) - Answer NPV/Investment in yr of rationing Sensitivity to sales volume - Answer NPV/PV of net contribution (after tax) Interest Rate Parity - Ans...

Revenue Management Final Exam Question & Answers 2024. what is the industry term used to describe the sum of prices paid by a business's customers? -daily receipts -profit -profits less expenses -total revenues -total revenues historically, what concept have hospitality managers chiefly used to calculate their selling prices? -income -revenue -costs -profits -costs what is an algebraic equivalent of the formula: sales=costs+profit? -profit=sales-costs -costs=sales+profits -costs=profit-sales -...

_______ leverage will ________ expected return when the investor's rate of return WITHOUT leverage exceeds the cost of debt - increased, increase -as long as each borrowed dollar is earning a greater return than it cost, the net difference goes to the owner, enhancing the equity return -also increases risk "Commercial" Mortgage Loans vs. Home Loans - commercial aren't as standardized, documents are longer and more complex, often no personal liability *Note, these are the same assumpti...

Term: What are the 8 steps of the valuation process? Definition: 1. Define the problem, 2. scope of work, 3. data collection & property description, 4. data analysis, 5. land value opinion, 6. application of the approaches to value, 7. reconciliation of value indications and final opinion of value, 8. report of defined value. Term: Valuation process Definition: A systematic procedure employed to provide the answer to a clients question about the value of real prope...

CFA Level 1 Formulas Exams 245 Questions with Answers Price change based on convexity - CORRECT ANSWER -duration(change in yield)+1/2(convexity)(change in yield)^2 Effective Duration - CORRECT ANSWER Required if a bond has embedded options: [(v-)-(v+)]/[2V0(change in curve)] Modified Duration - CORRECT ANSWER [(v-)-(v+)]/[2V0(change in yield)] Future Value - CORRECT ANSWER PV(1+(I/Y)^N) PV - CORRECT ANSWER FV/(1+r)^n PV of perpetuity - CORRECT ANSWER PMT / discount rate Ap...

SOLUTIONS MANUAL Engineering Economics Financial Decision Making for Engineers, 6/e Sixth Edition CHAPTER 1 Solutions to Chapter-End Problems A. Key Concepts When to Use Engineering Economics: 1.1 (a) Yes - several quantifiable alternatives exist (b) Yes - if quantifiable (c) No - alternatives are not quantifiable (d) No - since it mainly involves intangible qualifications of the candidate (e) Yes - at least two alternatives are quantifiable (f) Yes - with quantifiable costs and ...

Which of the following accounting methods records revenue when it is collected and expenses when they are paid? a. cash basis b. accrual basis c. modified cash basis d. modified accrual basis - Answer a. cash basis A ___________ occurs when expenses are greater than revenue a. net income b. net loss c. net gain d. net profit - Answer b. net loss Which is not one of the 3 major components of a balance sheet? a. assets b. liabilities c. expenses d. member's equity - Answer c. expen...

Well-structured MAC3702 Assignment 1 (ANSWERS) 2023 - DISTINCTION GUARANTEED . (DETAILED ANSWERS - DISTINCTION GUARANTEED!)...... Question 1 Complete Mark 1.00 out of 1.00 Papraika Limited (also known as “Papraika Stores”) is the largest non-food retailer in South Africa and is listed on theJohannesburg Stock Exchange (JSE). The company is the leading retailer of clothing, home appliances, stationery,cosmetics, accessories and cellular products in Southern Africa with more than 3 000 ret...

South Africa Income Tax Planning Exam Questions with Correct Answers A high DIF (Discriminant Inventory Function) score - ANSWER-increases the likelihood that the return will be selected for audit .a private letter ruling is - ANSWER-issued at the request of an individual who would like to know how the IRS would treat an individual transaction that the taxpayer plans to engage in .A related party audit - ANSWER-occurs when the IRS audits a tax return of one individual, and that individual...