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%72 1:an QUESTION 13 (6 PTS) A firm has $25,000 in after tax free cash flow that it can use to cither pay a dividend

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%72 1:an QUESTION 13 (6 PTS) A firm has $25,000 in after tax free cash flow that it can use to cither pay a dividend or invest in a 10 year treasury note currently yielding 7%. The corporate tax rate is 35% and the individual tax rate on ordinary income is 28%. If you are an investor, would you prefer that the firm invest in the ten year note and then pay a dividend or pay the dividend today so that you can invest in the ten year note yourself? Show all calculations for credit. O 73 11:22 OVS Recommendation: Circle One II Firm Invests OR Investor Invests D

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