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

Tax-Free municipal bonds with a return of 8.8%

Wooli Corporation bonds with a return of 11.75%

CFI Corp. preferred stock with a return of 9.8%

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

A. 7.383%

B. 7.772%

C. 8.181%

D. 8.612%

E. 9.065%