ACR Corporation is trying to choose between three alternative investments. The three securities that the company is considering are as follows:

• Tax-free municipal bonds with a return of 10.70%.
• Ray Corporation bonds with a return of 13.90%.

The companys tax rate is 25%. What is the after-tax return on the best investment alternative?

a. 10.48%

b. 10.70%

c. 10.43%

d. 10.64%