Nontax issues to consider when evaluating current salary versus deferred compensation include
A)the employee may need the cash now.
B)deferred compensation carries some risk.
C)deferred compensation may,depending on the contract,lock the employee into continued employment.
D)All of the above are issues to be considered.
Sophia’s employer is considering paying her either $20,000 of current salary or $40,000 of deferred compensation in 12 years.Her employer’s current tax rate is 34%,but the employer expects its tax
Sophia’s employer is considering paying her either $20,000 of current salary or $40,000 of deferred compensation in 12 years.Her employer’s current tax rate is 34%,but the employer expects its tax rate to be 25% 12 years from now.The employer’s ATROR is 11%.If the employer waits and pays the deferred compensation,its after-tax deferred compensation expense projected to Year 12 is
A)$20,000.
B)$26,400.
C)$30,000.
D)$40,000.
One observes that both the equilibrium price and the equilibrium quantity of coffee fall.Which of the following best fits the observed data?
One observes that both the equilibrium price and the equilibrium quantity of coffee fall.Which of the following best fits the observed data?
A) An increase in demand with supply constant.
B) An increase in demand coupled with a decrease in supply.
C) An increase in demand coupled with an increase in supply.
D) A decrease in demand with supply constant.
E) An increase in supply with demand constant.
A regression equation that predicts the price of homes in thousands of dollars is = 24.6 + 0.055×1 – 3.6×2,where x2 is a dummy variable that represents whether the
A regression equation that predicts the price of homes in thousands of dollars is = 24.6 + 0.055×1 – 3.6×2,where x2 is a dummy variable that represents whether the house is on a busy street or not.Here x2 = 1 means the house is on a busy street and x2 = 0 means it is not.From this we can conclude that on average homes that are on busy streets are worth $3600 more than homes that are not on busy streets.
If a fully-taxable bond yields a BTROR of 8% (Rb = 8%)and a tax-exempt bond of similar risk earns a BTROR of 5% (Rf = 5%),then the implicit tax is
If a fully-taxable bond yields a BTROR of 8% (Rb = 8%)and a tax-exempt bond of similar risk earns a BTROR of 5% (Rf = 5%),then the implicit tax is
A)3%.
B)5%.
C)8%.
D)None of the above.