Answer: 8.85%
Explanation:
GIVEN THE FOLLOWING ;
Municipal bond yield = 5.75%
After-tax rate = 35%
In other to produce the same after tax rate, What should be the yield of the synthetic company bond;
Assume yield on synthetic company bond = SC yield ;
We can connect our assumption using the mathematical relation below;
Municipal bond yield = after tax bond yield
5.75% = SC yield (1 - tax rate)
5.75% = SC yield (1 - 35%)
5.75% = SC Yield × 65%
SC yield = (5.75/65)%
SC yield = 0.08846%
SC yield = 8.85%
Answer:
The correct answer is letter "D": Insurance companies will only cover losses suffered while the policy is already in place.
Explanation:
Regardless of the type of insurance you purchase, the purpose of the coverage is having a policy in case an unexpected unfortunate event takes place. <em>Insurances do not enroll individuals who need the policy just because of an ongoing accident</em>. Those individuals could enroll in an insurance plan but the ongoing accident will not be covered by the company. Only those events happening when the policy is already valid are subject to evaluation for coverage.
Answer: C) Without an anonymous reporting system, the company does not meet the minimum requirements for the protections of the Federal Sentencing Guidelines.
Explanation:
Based on the information given, it should be noted that since there's no anonymous reporting system, the minimum requirements for the protections of Federal Sentencing Guidelines isn't met by the company.
The Federal Sentencing Guidelines simply refers to the rules that with regards to the uniform policy through which the individuals and the organizations that have been convicted of felonies and every other misdemeanors are set up. In this case, the requirements hasn't been met since there is no anonymous reporting system.
Answer:
true the investors expect to earn on those funds
Answer:
Sarbanes-Oxley Act of 2002.
Explanation:
Sarbanes-Oxley Act of 2002 is a legal framework which was passed by the 107th U.S Congress on the 30th of July, 2002. The law required that investment banking be completely made rid of research analysts who works at a broker-dealer firms, so that the analysts are not influenced to write favorable reports to enhance their potential investment banking businesses.
Hence, the legislation that requires a broker-dealer's research analysts to be completely separated from that firm's investment banking department is the Sarbanes-Oxley Act of 2002.
<em>It is a law that imposes a stiffer penalty for any securities related law break offence by the accountants, auditors etc by mandating strict reforms to the existing securities regulations. </em>