5. A Taxable bond has a yield of 9% and a tax-free municipal bond has a yield of 6%. If you're in the 35% tax bracket, which bond would you prefer? Show work: 2. Michael's, Inc. just paid $2.25 to its shareholders as the annual dividend. Simultaneously, the company announced that future dividends will be increasing by 4.90 percent. If you require a rate of return of 9.1 percent, how much are you willing to pay today to purchase one share of Michael's stock? SHOW ALL WORK: Formula: P0=D0(1+g)/(Rg)