Answer: (A) Cultural diffusion
Explanation:
The cultural diffusion is one of the important factor for the development of different types of culture as it improves the various types of social activities such as nationalities, ethnics and the religion.
By using the various factors such as trade, immigration and the travel influences the culture from one region to other cultural region.
According to the question, this type of adoption is the example of the cultural diffusion.
Therefore, Option (A) is correct.
The spread and adoption of baseball in Japan from America after the occupation by American servicemen in World War II is an example of cultural diffusion.
Explanation:The adoption of baseball by the Japanese is an example of cultural diffusion. This term refers to the spread of cultural beliefs, social activities, and ideas between individuals from different cultures. Following World War II, when the American servicemen occupied Japan, the Japanese started watching the Americans playing baseball and appreciated the sport, eventually adopting it themselves. Today, baseball is one of the most popular sports in Japan which is a direct outcome of cultural diffusion from American culture to Japanese culture.
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In earned value management, schedule variance is defined as:
A. The difference between the earned value and the actual cost.
B. The difference between the actual cost and the planned value.
C. The difference between the earned value and the planned value.
D. The difference between the cost and schedule performance indices multiplied by the budgeted cost at completion.
Answer:
C) The difference between the earned value and the planned value
Explanation:
In earned value management, the schedule variance is the case which helps to specify and make exact if you are ahead of the schedule or just the behind and also what is the quantity of this being ahead or behind.
The formula for that is: SV=EV-PV
SV- Scheduled Variance
EV-Earned Value
PV-Planned Value
The formula above may be converted in other types because of cost, percentages but the result will be identical.
Final answer:
Schedule variance in earned value management is defined as the difference between the earned value and the planned value, which indicates if a project is ahead or behind schedule.
Explanation:
In the practice of earned value management (EVM), schedule variance (SV) is a key metric that is used to assess the schedule performance of a project. The correct definition of schedule variance is: C. The difference between the earned value and the planned value. Earned value (EV) represents the value of work actually performed expressed in terms of the budget assigned to that work, while planned value (PV) indicates the value of work that was supposed to be completed at a given point in time within the project schedule. Schedule variance is a measure of whether a project is ahead or behind the planned schedule.
You have a client who is tolerant to risk who has a 35-year time horizon. The most appropriate allocation of this client's portfolio would be:
[A] Split 50% bonds, 50% stocks
[B] Split 45% bonds, 55% stocks
[C] Split 90% stocks, 10% money market
[D] 25% in four categories: bonds, money market, REITs, and stocks
Labor Recruiters, Inc., has been ordered to appear at a hearing before an administrative law judge of the National Labor Relations Board. A significant difference between a trial and an administrative hearing is that___________.
Answer:
A significant difference between a trial and an administrative hearing is thtat a hearsay con be introduced as evidence, in an administrative hearing.
Tawney Company is considering investing in a new piece of equipment that costs $700,000 and has a $200,000 residual value. The new equipment should provide a cost savings of $60,000 per year over its five-year life. In calculating ARR, what is the average amount invested in the asset (denominator)?
Answer:
average amount invested in the asset = $450,000
Explanation:
given data
equipment costs = $700,000
residual value = $200,000
cost savings = $60,000
to find out
average amount invested in the asset
solution
we get here Average amount invested that is express as
average amount invested in the asset = ( Amount invested + Residual value) ÷ 2 ........................1
put here value we get
average amount invested in the asset = [tex]\frac{$700000+$200000}{2}[/tex]
average amount invested in the asset = $450,000
Final answer:
The average amount invested in the asset for the ARR calculation is the sum of the initial cost and the residual value divided by two which is $ 450,000.
Explanation:
To calculate the average amount invested in an asset when determining the Accounting Rate of Return (ARR), one would typically average the initial cost of the asset with its residual or salvage value at the end of its useful life. In the scenario provided, Tawney Company is considering investing in equipment costing $700,000 with a residual value of $200,000 over a five-year life. We calculate the average investment by taking the sum of the initial cost and the residual value, and then dividing by two. Therefore, the average amount invested is
($700,000 + $200,000) / 2
= 900,000 /2
= $ 450,000.
During a recession, the best strategy of the Federal Reserve is to buy bonds sell government bonds, to make low risk sound assets available for banks to buy sell government bonds in order to reduce the size of the government's deficits. sell government bonds in order to increase aggregate demand
Answer:
To buy government bonds in order to increase aggregate demand.
Explanation:
When the Fed buys government bonds, it injects liquidity into the markets. This increase in the money supply lowers interest rates, increasing investment, and finally, boosting aggregate demand.
However, the Fed must be careful, because if the money supply grows too fast, or too much, instead of a boots for aggregate demand, what occurs is a spike in inflation rates.
Most colleges and universities have a campus activity board that brings entertainers and special events to campuses. To locate and hire these entertainers, many campuses send their student activity board members to one of the seven regional conventions or the National Association of Campus Activities (NACA) convention. More than 100 entertainers, talent agencies, and companies that provide promotional services exhibit their products at these conventions in an area similar to a trade show. (Conference attendees call this the Marketplace.) Approximately 20 entertainers are selected to present a short program (called a showcase) in which they demonstrate what they would do if hired to perform on campus. Many other entertainers have videos and CDs, which they hand out to student attendees. Only one or two members of any student group can actually set up a contractual agreement with an entertainer or his or her agency. Other student attendees provide input as to which entertainers best match the demographics of their institutions. Refer to College Entertainers. When some of the entertainers visit campuses, they give free t-shirts to people who came to see them perform. These tee-shirts are examples of:
Answer:
(C)
Explanation:
Premiums is something given as a reward, prize, or incentive.
In this case, the college entertainers offered an incentive or reward (premiums) to the people who came to see them perform.
The shirts would encourage the people who came to see them perform to be present some other time.
For example, a grocery store may give free sweets to children who accompany their parents to the store.
The top management team at Sierra Infusion is concerned about the declining performance of firms in their industry. The team members are becoming concerned about the security of their jobs at Sierra Infusion. At a meeting over dinner, the top management team agrees to go to the Board of Directors with a proposal for:__________ a. increased shareholder participation in decision making. b. greater concentration on Sierra's core industry. c. increased diversification of Sierra Infusion. d. the addition of outside directors to the Board.
Answer:
C. increased diversification of Sierra Infusion.
Explanation:
The top management team at Sierra Infusion is concerned about the declining performance of firms in their industry. The team members are becoming concerned about the security of their jobs at Sierra Infusion. At a meeting over dinner, the top management team agrees to go to the Board of Directors with a proposal for increased diversification of Sierra Infusion.
The top management team agrees to go to the Board of Directors with a proposal for increased diversification of Sierra Infusion. Option C is correct.
The top management team at Sierra Infusion is contemplating different strategies to address the declining performance of firms in their industry and to secure their positions within the company. They are considering proposing to the Board of Directors a strategy aimed at strengthening the company's position and addressing their concerns. After considering the context provided, the most fitting proposal given their situation seems to be: increased diversification of Sierra Infusion.
This strategy aligns with the advice to focus on the company's strengths and to cut costs, while also potentially opening new revenue streams to stabilize and grow Sierra Infusion. Diversification can help mitigate risks associated with the declining performance in Sierra's core industry and could provide a more secure foundation for the company's and the management team's future.
Hence, C. is the correct option.
Kate wants to analyze the target audience for her company’s product. She wants to understand their needs so she can relate to them. Her company’s product is luxury homes. The buyers get to have a good location to live in and are able to interact with quality neighbors. Katie wants to use Maslow’s hierarchy of needs to understand the buyer’s needs. Which needs would the company’s product fulfill for the buyers? The company’s products would fulfill the ______ A.latent B.Psychological C.Self-esteem and ______ A.Safety B.Self-actualization C.social needs of the buyers.
Answer:
psychological and social
Luxury homes fulfill the safety and self-esteem needs, according to Maslow's hierarchy of needs. They contribute to safety by providing shelter and stability, while their status symbol supports the buyers' self-esteem. Their location and the quality of neighbors may also meet buyers' social needs of belonging and community.
Explanation:Based on Maslow's hierarchy of needs, Kate's company's product, luxury homes, would primarily fulfill the Self-esteem and Safety needs of potential buyers. According to Maslow's theory, safety needs include things like shelter and stability, which would be significantly addressed by the purchase of a luxury home. The need for self-esteem could be fulfilled by the status symbol provided by these luxury homes. Furthermore, the element of well-located homes with quality neighbors may also fulfill the Social needs if the buyers value community and belonging.
However, it's important to remember that needs can be unique from person to person. Some buyers may view the purchase of a luxury home as a path to self-actualization, i.e., realizing their full potential and achieving a level of success and comfort in their lives that they aspire to.
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Wages are usually paid by the hour. Salary is usually a form of fixed compensation. Bonuses are a form of compensation obtained if certain criteria are met. Bonuses paid within two and a half months of year-end are included in employee's compensation in the year they were earned.
Answer:
True
Explanation:
1. Usually wages are paid by the number of hours spent working.
For example, someone who works as a warehouse supervisor may be paid hourly for the amount of time spent on the job.
2. Salary is usually the amount paid for services rendered, it is valued in cash, and does not include non-cash compensation like medical insurance.
For example, a person may be paid $15,000 (fixed amount) each month not necessarily considering the number of hours spent on job.
3. Bonuses are categorised under non cash compensation, because they are benefits added to employee's salary such as:
Annual bonuses or commissions, life insurance etc.
True in most organisations annual bonuses are paid within two and half months after end of year in the year they were earned.
Peter has a business opportunity that requires him to invest $10,000 today to receive $12,000 in one year. He can either use $10,000 that he already has for this investment or borrow the money from his bank at an interest rate of 10%. However, the $10,000 he has right now is needed for urgent repairs to
his home, repairs that will cost at least $15,000 if he delays them for a year. Should Peter make the investment? If so, which alternative (b-d) is best? (Note: It’s okay in this case to consider the
financing decision along with the investment decision.)
A) No, since the net present value (NPV) of the investment, should he take it, is less than the net
present value (NPV) of the home repairs if he delays them for one year.
B) Yes, since he can borrow the $10,000 from a bank, repair his home, invest $10,000 in the
business opportunity, which has an NPV > $0 will mean that he will still come out ahead
after paying off the loan.
C) Yes, since the net present value (NPV) of the investment is greater than zero he can invest the
$10,000 in the business opportunity, and then next year use this money plus the benefit from
this money to make the necessary home repairs.
D) Yes, since the net present value (NPV) of the investment, should he take it, is greater than the
NPV of the home repairs if he delays for one year.
Answer:
B) Yes, since he can borrow the $10,000 from a bank, repair his home, invest $10,000 in the
business opportunity, which has an NPV > $0 will mean that he will still come out ahead
Explanation:
We should analyze considering the opportunity cost which is the cost of the best rejected alternative:
busines opportunity return: 12,000 - 10,000 = 2,000
bank loan: 10,000 - 11,000 = -1,000
home repairs 15,000 - 10,000 = 5,000
not doing the home repair will mean 5,000 dollar extra in repair expense next year therefore the best option is to repair the home.
The question now, if it takes the loan to finance the business or not:
As the business will yield 2,000 and the loan -1000 the net amount will be 1,000 Thus it should take the loan and make the business investment.
Borstorff and her associates examined a number of factors related to employee willingness and concluded that married couples without children at home or those with non-teenage children are the least willing to accept an overseas assignment.
1.True
2.False
Answer:
The answer would be FALSE
Explanation:
There is no information necessary to answer the question but it is more likely that a couple with children will want to accept a job abroad because they have no responsibility such as child support, school, etc. for a child.
In the case of a couple with small children, they are less likely to agree to go elsewhere because of the expenses that this would imply.
Universe Co. issued 500,000 shares of common stock in the current year. Universe declared a 30% stock dividend. The market value was $50 per share, the par value was $10, and the average issue price was $30 per share. By what amount will Universe decrease shareholders’ equity for the dividend?
Answer:
The amount of $0 will decrease the shareholders equity for the dividend.
Explanation:
Stock Dividend is the kind of dividend in which the payment of dividend done in the form of additional or extra shares instead of a cash payout.
So, when the stock dividend is declared, then the portion of the retained earnings is re- classified as the contributed capital.
Therefore, the net effect on the aggregate equity will be $0.
During deployment of the disaster workforce, the Federal Coordinating Officer has the sole responsibility for fostering a positive and inclusive culture.A) TrueB) False
Answer:
False
Explanation:
The sole responsibility of the Federal Coordinating Officer is to ensure that disaster safety and health programs are well implemented and managed in any disaster area.
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A firm has the following order history over the last 6 months. January 120 February 95 March 100 April 75 May 100 June 50 What would be a 3-month weighted moving average forecast for July, using weights of 40% for the most recent month, 30% for the month preceding the most recent month, and 30% for the month preceding that one?
a. 50
b. 90
c. 72.5
d. 75
Answer:
(C) 72.5
Explanation:
3-month weighted moving average forecast for July is computed as the weighted average of the last 3 months - June, May and April.
July Forecast = [tex]Weight_{June} *Order_{June} +Weight_{May} *Order_{May}+Weight_{April} *Order_{April}[/tex]
July Forecast = (40%*50)+(30%*100)+(30%*75)
July Forecast = 72.5
Jones Company’s balance reflected Estimated Warranty Payable of $1,000 credit at the end of 2018, the current year. During 2019, the following year, Jones had sales of $100,000 and expects product warranties to cost the company 9% of sales. During 2019, Jones paid $8,500 for warranties. What is Jones Estimated Warranty Payable balance at the end of 2019?
Answer: $1,500 credit balance
Explanation:From the question above, Jones company had a warranty payable balance of $1,000 carried forward from 2018.
During the year 2019, total sales was $100,00 with 9% warranty cost on sales valued at $100,000 @ 9% = $9000.
During the year a total of $8,500 was paid out of the $9,000 leaving a balance of $500.
At the end of the year 2019, Jones company will have $1,500 payable warranty balance in its books.
To determine Jones Company's Estimated Warranty Payable at the end of 2019, start with the initial balance of $1,000, add the expected warranty expense of $9,000, and subtract the payments made totaling $8,500. The ending balance is $1,500.
Jones Company's Estimated Warranty Payable Calculation for 2019
Jones Company’s balance reflected Estimated Warranty Payable of $1,000 credit at the end of 2018, the current year. During 2019, Jones had sales of $100,000 and expects product warranties to cost the company 9% of sales. During 2019, Jones paid $8,500 for warranties. What is Jones Estimated Warranty Payable balance at the end of 2019
To calculate the Estimated Warranty Payable balance at the end of 2019, follow these steps:
Initial Balance: The beginning balance is $1,000.Warranty Expense for 2019: Calculate 9% of $100,000 in sales: (0.09 * $100,000) = $9,000.Total Warranty Liability: Add the initial balance and the warranty expense for the year: $1,000 (initial) + $9,000 (expense) = $10,000.Payments Made: During 2019, the company paid $8,500 for warranties.Calculate Ending Balance: Deduct the payments from the total warranty liability: $10,000 - $8,500 = $1,500.Therefore, the Estimated Warranty Payable balance at the end of 2019 is $1,500.
If a company adds a new product line to its existing portfolio, it has increased its___________.
Answer: Increased it's product mix width.
Explanation:
The product mix width of a company is the number of product lines a company has for sale in the market.
The product line of a company are individual but related products a company has for sale.
An example of product lines of a company could be a company producing: refrigerators, air conditioners and stabilizers. The company in this example would have a product mix width of three.
Which of the following is a cognitive obstacle to communication in organizations?
a) Unclear purpose for communicating
b) Breakdowns across the organizational hierarchy
c) Sender preconceptions and assumptions
d) Sender is not credible
e) Status differences between sender and receiver
Answer:
B. Breakdowns across the organizational hierarchy
Explanation:
Breakdowns across the levels in organizations is a cognitive barrier to communication in organizations
Tom visits George at his ranch. Although a novice on horseback, Tom decides to join George in a morning ride. George recommends that Tom ride an unbroken stallion named Satan. While mounting Satan, Tom is thrown headlong through the windshield of Tom's car. The damage to the car is $2,000 and Tom's own insurance pays him $1,500 ($500 deductible). Under what principle could Tom's insurance company sue George for his negligence?
Answer:
Subrogation
Explanation:
Is a term describing a legal right held by most insurance carriers to legally pursue a third party that caused an insurance loss to the insured.
This is done in order to recover the amount of the claim paid by the insurance carrier to the insured for the loss
A key modifying assumption in internal control is that the internal control system is the responsibility of management.
a) true
b) false
Answer:
a) true
Explanation:
Internal control system is the whole system of control financial and otherwise established by management in order to carry on the business of the enterprise in an efficient and orderly manner and to secure the integrity of the records and books of accounts.
The internal control is a management control tools used to ensure efficiency in operations.
Which of the following non options would be automatically implemented by the insurer of the other options has been selected by the policyowner ?
A. Reduced paid-up insurance
B. Cash surrender value
C. Interest only
D. Extended form
Answer:
D. Extended form
Explanation:
The extended form is a non forfeiture option which is included to extend the coverage for a limited period of time upon the failure of the policy holder to pay the premiums. Here, the policy holder stops to pay the premiums but keeps the full amount of the policy in force for whatever term the cash value permits.
It is the default non-forfeiture option that is, it is automatically implemented.
Under the Investment Advisors Act of 1940, when a contract has provisions which state that services may be provided by means of written material, oral statements, statistical information which expresses no opinion, and that such statements do not purport to meet the needs of any specific individuals and accounts of the firm, this would be defined as:
[A] Trustee relationship
[B] Impersonal advisory service
[C] Custodian relationship
[D] Management relationship
Answer:
B) Impersonal advisory service
Explanation:
The Investment Advisors Act of 1940 defines as Impersonal Advisory Services a contract that has provisions which state that services may be provided by means of written material, oral statements, statistical information which expresses no opinion, and that such statements do not purport to meet the needs of any specific individuals and accounts of the firm.
Impersonal advisory service are considered general information services, and do not require that investment advisors deliver Brochures that provide written disclosure statements.
An event tag is a code snippet that works directly with a global site tag to track customer actions specified by an advertiser as conversions. Which types of event tags can be created?
Answer: Page load and click
Explanation:
Page load and click specifies or tracks the customer's action when the customers clicks on an advertisement that redirects them from one platform to the companies platform using the advertisement link in that platform. This helps to see the effectiveness of the clicks and conversion of how well the tool is working.
Event tags, which work with a global site tag, help track customer actions as conversions. The three types of event tags that can be created are page load tags, click tags, and form submission tags, which are triggered in different situations such as when a user visits a webpage, clicks on a specific element, or submits a form.
Explanation:An event tag is a script or code snippet used in conjunction with a global site tag for the purpose of tracing customer actions that an advertiser identifies as conversions. There are primarily three types of event tags that can be created.
Page load tags: These tags are triggered when a user visits a webpage or loads a screen in an app. Click tags: These tags are triggered when a user clicks a specific element, such as a button or a link. Form submission tags: These tags are triggered when a user submits a form on your site.
Leverage these different types of event tags to capture actionable insights about your users' behavior.
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Ricardo works as a department head at Barnes Hospital. His job requires Ricardo to spend most of his time training and coaching employees to perform their jobs more effectively and teaching other managers to be better leaders. Ricardo's job requires him to make full use of his:_________a. technical skills.
b. conceptual skills.
c human relations skills.
d. orientation skills.
Answer:
c. Human Relations Skills.
Explanation:
Human relations applies to employees' interpersonal and group relationships and interactions.
Human relations relates to your ability to connect with other individuals in a positive way in order to create successful relationships from an individual employee's perspective.
Core HR skills help you develop and maintain strong connections under the HR framework. Skills in human relations include the ability to train, mentor, and inspire workers to be more successful.
The advantages of litigation are that it is private, quicker and less costly than alternative dispute resolution. True False
False
Explanation:
With litigation issues they don't get private, because every one can go to the court and will have knowledge of the dispute resolution process.It is not always quicker also, it sometimes could take even more than a year before there will be a ruling over the dispute by the court. Mostly appealing to the court by both parties makes the resolution longer.It is costly also, in terms of both time and money, a lawyer will have to be hired if the firm or individual doesn't have one and up and down transportation to and fro the court is all costly.#learnwithbrainly
Which of the following statements concerning general ledger accounts is true?
a. The general ledger accounts are the only source of accounting information that managers of job order cost operations need to plan and control production activities.
b. The general ledger accounts are sometimes fraught with errors meaning that managers of job order cost operations need to look to other information sources to plan and control production activities.
c. The typical general ledger accounts usually do not provide the accounting information that managers of job order cost operations need to plan and control production activities.
d. The typical general ledger accounts usually do not provide the accounting information that managers of job order cost operations need because of deficiencies in internal controls.
The typical general ledger accounts usually do not provide the accounting information that managers of job order cost operations need to plan and control production activities.
Option C
Explanation:
Typical general accounting generations typically do not provide the accounting information required to schedule and monitor the production activities by job-cost managers.
A general account is a database used to organize, store and sum up transactions of a business. Such accounts shall be divided into a general leader (and a map of account), accompanied by the balance sheet accounts first.
A number that all agencies can use shall be allocated to each general ledger account. A number is also allocated to separate accounts in each division. The range of transactions involving most small businesses assigns a number of three or four digits to each account.
The correct answer to the question about general ledger accounts is that they can sometimes contain errors, therefore additional sources of information should also be used by managers for planning and control activities.
Explanation:The question is asking to identify a correct statement about the use of general ledger accounts in job order cost operations. In this situation, option b: 'The general ledger accounts are sometimes fraught with errors meaning that managers of job order cost operations need to look to other information sources to plan and control production activities.' is true.
The general ledger is an important document that keeps track of all the financial transactions within a company. However, as it consolidates data from multiple sources, errors can occasionally occur.
That's why it's essential for managers to also utilize additional sources of information to reduce the risk of making incorrect decisions.
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walmart visa gift card Invalid Gift Card information. Please try again in 24 hours.
The 'Invalid Gift Card information' error on a Walmart Visa gift card signifies a problem in verifying the card data. This can result from incorrect card information or system issues. Continual issues should be directed to Walmart's customer service.
Explanation:If your Walmart Visa gift card shows 'Invalid Gift Card information' and advises you to try again in 24 hours, it means the system is unable to verify your card data. This could be due to several reasons; you may have entered incorrect card information, or there might be a temporary issue with the system's card verification process. Trying again after some time generally resolves this problem.
If the issue persists, it's recommended to reach out to Walmart's customer service for assistance. Ensure you have your card details handy to facilitate a smooth resolution process. Remember, it's essential to keep your card details secure and not share them with unauthorized persons.
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Foreign education loans interest subsidies by government for low income families in andhra pradesh.
A) True
B) False
Answer:
True
Explanation:
Government of Andhra Pradesh have made substantial investments through providing Post-Matric Scholarships to SC students on a Saturation basis. This laudable initiative over the years has encouraged a large number of SC students to complete professional Courses and other Graduate Courses.
Students whose family income is less than Rs.2.00 lakhs per annum from all sources are eligible. Total income from all sources of the employed candidates or his/her parents/guardians, shall not exceed Rs.2.00 lakhs per annum. (Two hundred thousand rupees per annum)
Countries Eligible for Foreign Studies under this scheme
USA, UK, Australia, Canada, and Singapore.
Consider the following totals: Revenues = $100,000; Operating costs and expenses = $45,000; Other revenues = $5,000; Income taxes = $18,000; Net income = $42,000. What was the total of operating income?
Answer:
$55,000
Explanation:
The operating income of any entity can be calculated using the following formula:
Operating income=Net income+ income tax expense+ finance cost- other revenues
Net income in this question=$42,000
Income taxes=$18,000
finance cost=0
Other revenues=$5000
Operating income=$42,000+$18,000+0-$5000=$55,000
The operating income of any entity can also be calculated using the following formula:
Operating income=Revenues-operating costs
=$100,000-$45,000=$55,000
Amos Ball, Inc., is a printing company in the Southern New Jersey that has been family owned and managed for three generations. Which of the following statements is most likely to be TRUE?
a. The function of risk-bearing and decision making are separate at Amos Ball.
b. If all things are equal, Amos Ball whose CEO is a family member will perform better a firm that has a non-family CEO.
c. At Amos Ball, the occurrence of managerial opportunism is highly likely.
d. Agency costs at Amos Ball are high
Answer:
B) If all things are equal, Amos Ball whose CEO is a family member will perform better THAN a firm that has a non-family CEO.
Explanation:
When researchers have studied performance of family businesses, they usually reach the same conclusion, the company will work better if a family member is the CEO or manager. This conclusion applies only to family businesses, big and small, but not to corporations.
Probably this occurs because family businesses tend to operate in a different way since the relationships between the members of the organization are different. The whole organization tends to behave as one big family and their problems are different also, therefore it is useful to have a CEO that understands "family" relationships.
Fergie has the choice between investing in a State of New York bond at 5.9 percent and a Surething Inc. bond at 9.4 percent. Assuming that both bonds have the same nontax characteristics and that Fergie has a 30 percent marginal tax rate, what interest rate does the state of New York bond need to offer to make Fergie indifferent between investing in the two bonds?
Answer:
the interest rate that the state of New York bond need to offer to make Fergie indifferent is 6.58%
Explanation:
After tax returning surething bond = 9.4%*(1-30) = 6.58%
when New York bond offers 6.58%,Fergie will be indifferent between investing in the two bonds
Therefore, the interest rate that the state of New York bond need to offer to make Fergie indifferent is 6.58%