Question
A municipal bond pays interest rate of 4%. A corporate bond of similar risk and maturity...
- A municipal bond pays interest rate of 4%. A corporate bond of
similar risk and maturity pays interest rate of 5%. An investor
with a marginal tax rate of 30% will
- a. Choose the municipal bond
- b. Choose the corporate bond
- c. Be indifferent between the two bonds
- d. Invest 50:50 in the two bonds
The following data pertain to Debry Company for 2017 and 2018. The company reported net income of $120,000 during 2018. Depreciation expense was $25,000. Calculate the cash flow from operating activities for the company for 2018.
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- a. $150,000
- b. $146,000
- c. $145,000
- d. $140,000
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