How much of the return on your investment do you keep

Assignment Help Financial Management

Reference no: EM13928195

Suppose an investment of $7,000 earns 3% annual interest, compounded quarterly for a period of one year. When computing your income taxes, you find that the applicable federal rate is 28% of the interest and the applicable state rate is 7% of the interest. How much of the return on your investment do you keep?

Reference no: EM13928195

Questions Cloud

Planning to undertake a project with internal rate of return : Your company’s WACC is 11%. It is planning to undertake a project with an internal rate of return of 14%, but you believe this project is not a wise investment. What logical arguments would you use to convince your boss to forego the project despite ..

About the efficient market hypothesis : For each of the following scenarios, discuss whether profit opportunities exist from trading in the stock of the firm under the conditions that (1) the market is not weak form efficient, The stock price has risen steadily each day for the past 30 da..

What rate of return should jacobs require on a project : What rate of return should Jacobs require on a project of average risk? If a new venture is expected to have a beta of 1.6, what rate of return should Jacobs demand on this project?

How is relevant costing used in decision making : How is relevant costing used in decision making? What would the relevant costs be in deciding whether to discontinue a segment of business? What would the relevant costs be in deciding how to optimize use of a constrained resource?

How much of the return on your investment do you keep : Suppose an investment of $7,000 earns 3% annual interest, compounded quarterly for a period of one year. When computing your income taxes, you find that the applicable federal rate is 28% of the interest and the applicable state rate is 7% of the int..

Firm faces an average tax rate : Suppose that B2B, Inc., has a capital structure of 36 percent equity, 16 percent preferred stock, and 48 percent debt. Assume the before-tax component costs of equity, preferred stock, and debt are 15.0 percent, 12.0 percent, and 10.0 percent, respec..

What is effective mortgage yield for borrowing this mortgage : Jane plans to borrow from a bank to finance her investment in a real estate project. She considers an ARM loan with three-year loan term, $100,000 loan amount. If the loan will be repaid after 3 years, what would be the monthly payment and the endin..

Lean six sigma-customs-trade partnership against terrorism : Global trends are changing on a daily basis. Global economies are weakening and some companies are discouraged by the condition of terroristic threats that are occurring.

Overall impressions of the bsha program : What are your overall impressions of the BSHA program? What did you like the most about this program? What would you like to see added?

User Account

All Pages