Arvo 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 8.90%.

∙ Wooli Corporation bonds with a return of 11.30%.

∙ CFI Corp. preferred stock with a return of 9.40%.

The company's tax rate is 25.00%. What is the after-tax return on the best investment alternative? Assume a 50.00% dividend exclusion for taxes on dividends. (Round your final answer to 3 decimal places.)