The following statement about futures and derivatives hedging false is D. A forward contract has only one payment cash flow that occurs at the time of delivery.
Futures and derivatives are used for risk management and speculation. Derivatives are contracts that derive their worth from an underlying asset's performance. The two types of derivatives are forwards and futures, which are both contracts to buy or sell an asset at a specified future date and price. A futures contract, unlike a forward contract, has a clearinghouse that ensures the agreement is honored on both sides. The impact of basis risk on hedgingBasis risk refers to the danger of the spot asset's price and the asset delivered under a forward or futures contract not having a perfect correlation.
Basis risk can make hedging less effective because it may necessitate the purchase or sale of additional hedges at unfavorable prices. Macrohedging and selective hedging, which results in an over-hedged position, may be viewed as speculative by regulators. Macrohedging utilizes derivatives like futures and forward contracts to protect against the dangers associated with asset or liability management. This will assist companies in mitigating these risks more effectively. So therefore the false statement is: D) A forward contract has only one payment cash flow that occurs at the time of delivery.
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The government is concerned that the high inflation rate is threatening the sustainability of recent economic growth. What is the best way for the government to reduce the inflation rate?
Answer:
both raising taxes and reducing government spending, reduce the amount of money in the economy and reduce inflationary pressure on prices
Explanation:
Inflation is a situation where prices of goods and services become high. It can be caused by increased sand where consumers are willing to spend more on goods, or by an increase in production cost forcing suppliers to increase price.
The government can take various measures to control price increase during an inflation.
If money supply is reduced by less government spending and increased tax, there will be less tendency for price to increase.
Consumers will not be able to buy at the high price so suppliers are forced to reduce their prices
A new business should be based on an entrepreneur’s individual interests because the entrepreneur must:
A. Have sufficient confidence to succeed
B. Be willing to take personal responsibility
C. Have enough determination to work alone
D. Dedicate as many hours as needed to the work
Answer:
D. Dedicate as many hours as needed to the work
Explanation:
Have a nice day!! :)
Answer:
D
Explanation:
joe Henry's machine shop uses 2540 brackets during the course of a year. These brackets are purchased from a supplier 90 miles away. The following information is known about the brackets: Annual demand 2,540
Holding cost per bracket per year $ 1.30
Order cost per order $ 18.00
Lead time 2days
Working days per year 250
d) Given the EOQ, what is the total annual cost of managing (ordering and holding) the inventory? $_______ (round your response to two decimal places)
The total annual cost of managing the inventory is $94.44 (rounded to two decimal places).
To calculate the total annual cost of managing the inventory, we need to use the Economic Order Quantity (EOQ) formula:
EOQ = sqrt((2 * annual demand * order cost) / holding cost per bracket per year)
EOQ = sqrt((2 * 2540 * 18) / 1.30) = 140.72
Now that we have calculated the EOQ, we can use it to calculate the total annual cost:
Total annual cost = (annual demand / EOQ) * order cost + (EOQ / 2) * holding cost per bracket per year
Total annual cost = (2540 / 140.72) * 18 + (140.72 / 2) * 1.30 = $94.44
Therefore, the total annual cost of managing the inventory is $94.44 (rounded to two decimal places).
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All of the following are true statements about the workers in the Lowell factory system EXCEPT a they worked a maximum five days a week for eight hours a day b they were virtually all New England farm girls c they lived in company boardinghouses and were forbidden to form unions d they worked in factories where the windows were nailed shut
The statement about the workers in the Lowell factory system which is incorrect is:
A. They worked a maximum five days a week for eight hours a dayAccording to the given question, we are asked to show the odd statement out from the given answer choices about the Lowell factory system which was not true.
As a result of this, we know that the Lowell factory workers were young girls who worked in Massachusetts in America at the height of the Industrial Revolution and they lived in company boarding houses, forbidden to form unions and the windows of the factories were nailed shut.
Therefore, the correct answer is option A
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if the required reserve ratio
Answer:
4
Explanation:
Formula: 1 / Reserve money ratio -> 1 / 0.25 = 4
imagine a trader buys a put option on a stock with a strike price of 500 and pays a premium of 25. what is the trader's break-even point?
The trader's break-even point in a put option is the strike price minus the premium paid. Therefore, the trader's break-even point would be 475.
A put option is a financial contract that gives the buyer the right, but not the obligation, to sell an underlying asset (in this case, the stock) at a specific price (the strike price) within a certain period of time. The premium paid is the price the buyer pays for the option contract. In this scenario, the trader bought a put option with a strike price of 500 and paid a premium of 25. If the stock price falls below the strike price, the option will be "in the money" and the trader can sell the stock at the higher strike price. However, if the stock price stays above the strike price, the option will be "out of the money" and the trader will not exercise the option.
To calculate the break-even point, we subtract the premium paid from the strike price: 500 - 25 = 475. Therefore, the trader's break-even point is 475. If the stock price falls below 475, the trader will start making a profit on the option. If the stock price stays above 475, the trader will not make a profit and may choose not to exercise the option.
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How do supply and demand help determine the price of a product?
Answer:
if supply is low but demand is high the price will go up due to limited supply however if demand is low and supply is high the price will be lower because there is a surplus of supplies and not very many people buying it
Explanation:
Answer:
By creating a balance between buyers who want low prices and sellers who want high prices
Explanation:
True or False? Hard skills will get you the job, but soft skills will allow you to keep the job.
The statement Hard skills will get you the job, but soft skills will allow you to keep the job is true.
What is hard skills and soft skills?Hard skills can be defined as the skills your possess which are the one you have as a result of been educated and the skills you possess as a result of the experience you have gain.
On the other hand Soft skills can be defined as inbuilt skills you possess that can enables you to succeed at your workplace and this skills includes the way you communicate and interact with people at your place of work.
Therefore the statement Hard skills will get you the job, but soft skills will allow you to keep the job is true.
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. As a wholesaler of all kinds of paper supplies, Ajay owns a paper mart in Chawri Bazar, in Delhi. He meets the demands of the retailers by procuring different kinds of paper from different manufacturers. He extensively undertakes advertisements and other sales promotional activities for his products which in turn also helps the retailers in persuading prospective buyers. Many a times he sells goods on credit to his old customers (retailers). He is well appreciated for providing guidance to the retailers about various aspects of marketing. A) Identify the various types of services Ajay is providing to the retailers. B) Also explain any two services that he must be extending to the manufacturers as well
Answer:
A Wholesaler and Retailers
A. Various types of services Ajay is providing to the retailers are:
1. Procuring variety of papers from different manufacturers.
2. Undertaking advertisement and other sales promotional activities to the benefit of retailers.
3. Extending credit sales to retailers.
4. Providing marketing guidance to retailers.
B. Two services that Ajay is extending to the manufacturers as well are:
1. Providing wider market for manufacturers by purchasing in bulk.
2. Helps the manufacturers to distribute their goods.
Explanation:
As a wholesaler, the business acts as the middleman between the paper manufacturers and the retailers. The wholesaler purchases paper in bulk from the manufacturers, thereby encouraging them to produce more. He enables retailers, who are at the grassroots, to gain access to a variety of the manufacturers' products at small quantities. He also helps in the distribution of goods.
The various types of services that Ajay is providing to retailers are selling paper from different manufacturers, carrying out advertisement and sales promotional activities to retailers.
Other activities performed by Ajay to retailers is selling merchandise on credit and marketing guidance. It also extends its services to manufacturers, such as assisting in market expansion and selling goods.
Wholesale and retail tradeThey are modalities of buying and selling goods with different characteristics. The wholesaler is responsible for supplying products in large quantities to retailers, who resell such products in smaller quantities to the final consumer.
Therefore, Ajay assists in the intermediation between paper manufacturers and retailers, helping in the best conditions and strategies for the improvement of both.
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What are the financial activities related tourism
Having a tour leader sell you items such as maple syrup, jackets and other items related to Canada when visiting the country. This benefits the Canadian economy in three ways.
Paying for the tour to the tour leader make the tour provider profitable.
Paying local companies for souvenirs as listed above.
Paying transit and housing prices to have a place to stay when visiting the country and having transit to get to places
A market might have an upward-sloping long-run supply curve if:
Answer:
a. firms have different costs.
Explanation:
A market might have an upward-sloping long-run supply curve if
a. firms have different costs.
b. consumers exercise market power over producers.
c. all factors of production are essentially available in unlimited supply.
d. the entry of new firms into the market has no effect on the cost structure of firms in the market.
Which criteria would be the ranked most important when an organization is choosing off-the-shelf software
______ Is a market in which a large number of suppliers compete with each other to satisfy the needs and wants of a large numbers of consumers at a competitive price.???
Answer : Monopolistic competition
Answer:
Monopolistic Competition
Explanation:
In a monopolistic competitive market, there are large numbers of sellers who do not sell identical products instead they sell differential products. They compete with each other at a competitive price. The products could be differentiated in many ways including quality, style, location and even brand name. Since they compete at a competitive price, if there is a substantial rise in the price of any of the products, the buyers could quickly shift from one product to another. The most crucial factor behind product differentiation is because of geographical factors. Under a monopolistic competitive market, the sellers do not have any influence over customer loyalty and limited control over the price.
The total amount of stock that a corporation's charter allows it to issue is referred to as: A) Issued stock B) Outstanding stock C) Common stock D) Authorized stock
The total amount of stock that a corporation's charter allows it to issue is referred to as (D) Authorized stock.
Authorized stock represents the maximum number of shares of stock that a corporation is permitted to issue according to its corporate charter or articles of incorporation. This number is specified when the corporation is initially formed and can be adjusted through certain legal processes, such as amending the charter or obtaining shareholder approval.
It is important to note that authorized stock does not represent the actual number of shares issued or outstanding. Rather, it sets the upper limit or maximum number of shares that the corporation can legally issue. The corporation may choose to issue a portion or all of the authorized stock as issued stock, and the shares that are currently held by shareholders are referred to as outstanding stock.
Common stock (C) represents the shares that are typically issued to shareholders, entitling them to ownership in the corporation and granting certain rights, such as voting rights and potential dividend distributions. Issued stock (A) refers to the shares that have been actually issued by the corporation to shareholders. Outstanding stock (B) refers to the shares that are currently held by shareholders and excludes any treasury stock (shares repurchased by the corporation).
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SHINNING STAR BUS COMPANY (PTY) Ltd
Answer:
is that a question?????????
As a business owner, Marlon analyzed the economy to determine if it is a good time to open a new shop. What facts probably helped him realize that it is a good time do it?
Low unemployment rate and prices are rising slowly
High unemployment rate and prices are rising quickly
Few homes are being sold and restuarants are closing
Prices aren't changing and factories are shrinking
As a business owner, Marlon's decision to open a new shop would have been influenced by several economic factors. The two factors that probably helped him realize that it is a good time to do so are the low unemployment rate and slowly rising prices. These indicators suggest a stable economy with a healthy labor market and a controlled inflation rate. The correct option is a.
A low unemployment rate implies that there is a high demand for labor, which means that consumers have purchasing power to support businesses. In addition, low unemployment rates tend to increase consumer confidence, which can translate into higher spending and revenue for businesses. The slowly rising prices also suggest that inflation is under control, which means that consumers are not feeling the pinch of increasing costs of goods and services. This can lead to increased spending and growth in the economy.
On the other hand, the other options presented in the question, such as high unemployment rates and quickly rising prices, few homes being sold, and restaurants closing, indicate a weak or declining economy. High unemployment rates and quickly rising prices can result in decreased consumer confidence and lower spending, which can be detrimental to businesses. Few homes being sold and restaurants closing are also signs of a weak economy with decreased demand. The correct option is a.
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A firm is evaluating a project with an initial cost of $ 828,487 and annual cash inflows of $ 337,427 per year (first cash flow to be received exactly one year from today) for each of the next 5 years. If the cost of capital for this project is 8 %, what is this project's NPV? Round to 2 decimal places
To calculate the net present value (NPV) of the project, we need to discount each cash inflow to its present value and subtract the initial cost of the project from the sum of the present values.
Using the formula:
NPV = (Cash inflow / (1 + Cost of capital)^n) - Initial cost
Where n is the year of the cash inflow.
For the given project, the calculation for each year would be:
NPV1 = (337,427 / (1 + 0.08)^1) - 828,487 = - 732,053.96
NPV2 = (337,427 / (1 + 0.08)^2) = 311,828.13
NPV3 = (337,427 / (1 + 0.08)^3) = 286,369.60
NPV4 = (337,427 / (1 + 0.08)^4) = 263,798.20
NPV5 = (337,427 / (1 + 0.08)^5) = 243,792.73
The sum of the present values of the cash inflows is:
PV = NPV1 + NPV2 + NPV3 + NPV4 + NPV5
PV = -732,053.96 + 311,828.13 + 286,369.60 + 263,798.20 + 243,792.73
PV = $3735.70
Therefore, the net present value of the project is $3735.70. Since the NPV is positive, the project is expected to generate a positive return and may be considered for investment.
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How much does it cost to build a private school in Dubai?
Answer:
14 per cent
Explanation:
are these the right key words for the definitions?
Answer:
yes because the definition match the words given
which of the following is a limitation of a global strategy? global firms may improve sales by not being responsive. it uses differentiated processes in its value chain. standardized products may not meet the needs of customers in particular countries. it is typically a low-cost strategy.
A limitation of a global strategy is that standardized products may not meet the needs of customers in particular countries. (Option C).
What is Global Strategy?A global strategy involves offering standardized products or services across different markets, often with a focus on achieving economies of scale and cost savings. However, this approach can also result in a lack of customization and flexibility to meet the unique needs and preferences of customers in different countries.
Therefore, companies using a global strategy may face the challenge of adapting their products or services to different cultural and regulatory contexts to satisfy local customer needs and preferences.
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Creating provision against fluctuation in the price of investment is an example of which accounting convention.
Creating provision against fluctuation in the price of investment is an example of the accounting convention known as prudence or conservatism. The prudence concept is an important principle in financial reporting that guides accountants to exercise caution when recording transactions and preparing financial statements.
Under the prudence concept, accountants anticipate potential losses or expenses while not overstating potential gains. They adopt a more conservative approach by recognizing losses and liabilities as soon as they are probable, but they only recognize gains and assets when they are realized. This approach helps prevent overstatement of financial position and income, ensuring that financial statements present a more realistic and cautious view of a company's financial health.
Creating provisions against fluctuation in the price of investments reflects the application of the prudence concept. By setting aside provisions for potential losses in the value of investments, companies acknowledge the uncertainty and volatility in the market. This allows them to provide a more accurate representation of their financial position, especially when the market value of investments is lower than their carrying value.
Overall, the prudence concept promotes transparency, reliability, and prudential decision-making in financial reporting. It encourages companies to err on the side of caution, providing a more conservative perspective to stakeholders and facilitating better risk assessment and management.
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X-Co issued 1,000 shares of its 5%, $100 par value, cumulative preferred stock for $100 cash per share. The journal entry to record this event includes a ______. (Check all that apply.)
Answer:
- $100,000 debit to cash
- $10,000 credit to preferred stock
- $90,000 credit to additional paid-in capital
What was one of the most effective tools labor unions had, which consisted of workers agreeing not to go to work until their demands were met?.
One of the most effective tools labor unions had was the use of strikes.
Strikes are when workers agree not to go to work until their demands are met. This tactic is powerful because it disrupts the flow of business and puts pressure on employers to negotiate with the workers' union. Strikes can be costly for both sides, as workers lose wages and employers lose profits.
However, they can also be successful in achieving the workers' goals, such as better wages, benefits, and working conditions. It is important for unions to carefully plan and organize strikes to ensure they are effective and have the support of their members.
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anna purchased an antique ring in 2015. the value of the ring has increased in value year to year at a rate of 15% annually. the value of the ring in 2015 was $4500. what was the value of the ring in 2020? enter your answer, rounded to the nearest dollar, in the box.
Let the the value of ring in 2020 be X. So, X = $4500*(1.15) ^5 = $9051
A.T.Q, the value of the ring will be $9051 after a rate of 15% annually.
What does interest rate mean?The amount that the lender charges the borrower over and beyond the principal amount is referred to as the interest rate. A person who deposits money in a bank or other financial institution also earns additional income in terms of the recipient, known as interest, taking into account the time value of money.
What happens when interest rates are low?Low borrowing rates put more money in consumers' pockets for spending. They might also be more ready to borrow money and make larger purchases as a result, which increases demand for household products. Banks are now able to lend more, which is a bonus for financial organizations.
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Which of the following best describes managerial ethics?
Answer: It is the standard of conduct that guides a person's decisions and behavior.
if prices increased, we need to adjust nominal gdp values to give us a measure of gdp for various years in constant-dollar terms. we refer to that adjustment as
If prices increased, we need to adjust nominal gdp values to give us a measure of gdp for various years in constant-dollar terms. we refer to that adjustment as price deflator.
What is the GDP defined simply?
The gross domestic product (GDP) of a nation is a monetary indicator of the final products and services—those purchased by the consumer—that were created over a specific time period (say a quarter or a year). It records all production that takes place within a nation's boundaries.
When prices rise, what happens to nominal GDP?
Growing nominal GDP from year to year may instead indicate an increase in prices due to the fact that it is calculated in current prices as opposed to an increase in the quantity of goods and services produced. It will appear that the nominal GDP is higher if all prices increase more or less simultaneously, a condition known as inflation.
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identify the main sections on a statement of cash flows
A statement of cash flows has three primary sections: operating activities, investing activities, and financing activities.
All the three sections on a statement of cash flows are described below:
1. Operating activities
The first section on a statement of cash flows is Operating activities, which is generated from the company's principal operations. It includes the inflow and outflow of cash from activities such as sales of products or services, collections from customers, payments to suppliers, and other operating expenses.
2. Investing activities
The second section on a statement of cash flows is Investing activities. It includes the inflow and outflow of cash from the acquisition or disposal of assets like property, plant, and equipment, intangible assets, and other investments.
3. Financing activities
The third section on a statement of cash flows is Financing activities, which represents the inflow and outflow of cash from sources such as borrowing, issuing or repurchasing stock, and paying dividends. The primary purpose of this section is to explain how the business acquires and uses cash from its capital providers.
The statement of cash flows is an essential tool for assessing the business's liquidity position and the ability of a business to pay dividends or repay loans on time. In conclusion, these three primary sections on a statement of cash flows provide insights into the company's financial health.
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A statement of cash flows has three primary sections: operating activities, investing activities, and financing activities.
All the three sections on a statement of cash flows are described below:
1. Operating activities
The first section on a statement of cash flows is Operating activities, which is generated from the company's principal operations. It includes the inflow and outflow of cash from activities such as sales of products or services, collections from customers, payments to suppliers, and other operating expenses.
2. Investing activities
The second section on a statement of cash flows is Investing activities. It includes the inflow and outflow of cash from the acquisition or disposal of assets like property, plant, and equipment, intangible assets, and other investments.
3. Financing activities
The third section on a statement of cash flows is Financing activities, which represents the inflow and outflow of cash from sources such as borrowing, issuing or repurchasing stock, and paying dividends. The primary purpose of this section is to explain how the business acquires and uses cash from its capital providers.
The statement of cash flows is an essential tool for assessing the business's liquidity position and the ability of a business to pay dividends or repay loans on time. In conclusion, these three primary sections on a statement of cash flows provide insights into the company's financial health.
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Kenan Kav and Marry Jonas are discussing the audit program for the revenue account. Kenan and Marry disagree about whether they should use procedure A or B below to test the occurrence assertion for the revenue account:
Select a sample of sales from the sales journal and agree the details in the journal to the sales invoices, delivery slips, and customer orders.
Select a sample of sales invoices, delivery slips, and customer orders and agree the details to the details recorded in the sales journal.
Required
a) Which test provides evidence about the occurrence assertion? Why?
b) Which assertion does the other test provide evidence about?
a) The test that provides evidence about the occurrence assertion is - Select a sample of sales from the sales journal and agree the details in the journal to the sales invoices, delivery slips, and customer orders.
The test proves whether the sales recorded in the journal are indeed authentic or not. The objective of the audit is to confirm that the sales recorded in the revenue account were indeed genuine sales made to customers in the accounting period. This is why an auditor must perform a test of details of sales transactions. The auditor can accomplish this by selecting a sample of transactions from the sales journal and then validating that the details for that sale were present in the journal.
b) The other test provides evidence about the completeness assertion. The test - Select a sample of sales invoices, delivery slips, and customer orders and agree the details to the details recorded in the sales journal provides evidence about the completeness assertion. It confirms whether sales made to customers in the accounting period were recorded in the sales journal or not. An auditor can use this test to verify that all the sales were recorded in the sales journal. An auditor can accomplish this by selecting a sample of sales invoices, delivery slips, and customer orders, and then comparing the details on those documents to the sales journal.
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A) the pay rate differential between the arts and entertainment industry and the construction industry is. The relative pay difference between the arts and entertainment industry and the construction industry is
The pay rate differential between the arts and entertainment industry and the construction industry is the difference in the average salary or wage for workers in these two industries.
This difference can be calculated by subtracting the average pay in the construction industry from the average pay in the arts and entertainment industry.
For example, if the average pay in the arts and entertainment industry is $50,000 per year and the average pay in the construction industry is $40,000 per year, the pay rate differential would be $10,000 ($50,000 - $40,000).
It is important to note that the pay rate differential can vary depending on factors such as geographic location, level of education, and experience. Additionally, the pay rate differential may not accurately reflect the overall compensation package, which can include benefits such as health insurance and retirement plans.
Overall, the pay rate differential between the arts and entertainment industry and the construction industry is an important factor to consider when comparing salaries and making career decisions.
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Problem 4-43 (LO. 3, 5) During the year, Alva received dividends on her stocks as follows: Amur Corporation (a French corporation whose stock is traded on an established U.S. securities market) Blaze, Inc., a Delaware corporation Grape, Inc., a Virginia corporation If an amount is zero, enter "0". a. Alva purchased the Grape stock three years ago, and she purchased the Amur stock two years ago. She purchased the Blaze stock 18 days before it went ex-dividend and sold it 20 days later at a $5,000 loss. Alva had no other capital gains and losses for the year. She is in the 32% marginal tax bracket and applicable qualifying dividend rate is 15%. The amount of her tax on qualifying dividends is $ The amount of her tax on nonqualifying dividends is $ The total tax on all her dividend income is $60,000 Daughter's tax liability on the dividends is $ 40,000 22,000 b. Alva's daughter, who is 25 and not Alva's dependent, had taxable income of $6,000, which included $1,000 of dividends on Grape, Inc. stock. The daughter had purchased the stock two years ago. c. Alva can earn 4.5% before-tax interest on a corporate bond or a 4% dividend on a preferred stock. Assuming that the appreciation in value is the same, which investment produces the greater after-tax income? d. The same as part (c), except Alva's daughter will be the one making the investment. Which investment produces the greater after-tax income?
a. Tax on qualifying dividends: $0
Tax on nonqualifying dividends: $0
Total tax on all dividends: $0
Daughter's tax liability on dividends: $0
b. Daughter's tax liability on $1,000 dividend: $0
c. Cannot determine greater after-tax income without specific values.
d. Cannot determine greater after-tax income without specific values.
a. To calculate Alva's tax on qualifying dividends, we first determine the total amount of qualifying dividends she received. From the given information, she received dividends from Amur Corporation and Blaze, Inc.
The dividend from Amur Corporation is considered a qualifying dividend since it is a foreign corporation whose stock is traded on an established U.S. securities market.
The dividend from Blaze, Inc. is not a qualifying dividend since it is a domestic corporation.
Therefore, Alva's total qualifying dividends are the amount she received from Amur Corporation.
Next, we calculate the tax on qualifying dividends. The applicable qualifying dividend rate is 15%, and Alva is in the 32% marginal tax bracket.
The tax on qualifying dividends is calculated by multiplying the qualifying dividends by the applicable qualifying dividend rate.
b. Alva's daughter received $1,000 of dividends on Grape, Inc. stock, which is a qualifying dividend.
Her taxable income is $6,000, which includes the $1,000 of dividends.
To calculate her tax liability on the dividends, we multiply the qualifying dividends by the applicable qualifying dividend rate.
c. To determine which investment produces greater after-tax income, we compare the after-tax income from the corporate bond and the preferred stock.
We calculate the after-tax income for each investment by subtracting the tax liability from the before-tax income.
Since we don't have specific values for before-tax income or tax liability, we cannot determine which investment produces greater after-tax income.
d. Similarly, without specific values for the daughter's before-tax income or tax liability, we cannot determine which investment produces greater after-tax income for her.
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