J, B. Wands has $14,000 to invest. He lives in Saskatchewan and has other income of $80,000
Question:
J, B. Wands has $14,000 to invest. He lives in Saskatchewan and has other income of $80,000 for the year. A current bond issue is paying 6 percent, while a popular share issue offers a 5 percent dividend return.
a. Calculate the better return on an afrertax basis (assume 33.25% marginal rate on bonds and 10.32% on shares). What is the afrertax yield?
b. What other factors should be considered?
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a 603325 501032 0409 or a 409 afrertax yield on the bond investment b Other factors to be cons...View the full answer
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Related Book For
Foundations Of Financial Management
ISBN: 9781259265921
11th Canadian Edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
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