17. The Shelton Corporation has some excess cash that it would like to invest in marketable securities for a long-term hold. Its vice president of finance is considering three investments (Shelton Corporation is in a 35 percent tax bracket and the tax rate on dividends is 15 percent). Which one should he select based on aftertax return:

(a) Treasury bonds at a 7 percent yield;

(b) corporate bonds at a 10 percent yield; or

(c) preferred stock at an 8 percent yield?