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Corporate After-Tax Yield The Shrieves Corporation has $25,000 that it plans to invest in marketable securities. It is choosing among AT&T bonds (which yield 7.4%),

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Corporate After-Tax Yield The Shrieves Corporation has $25,000 that it plans to invest in marketable securities. It is choosing among AT&T bonds (which yield 7.4%), AT&T preferred stock (with a dividend yield of 7.0%), and state of Florida muni bonds (which yield 6% but are not taxable). The federal tax rate is 21% (ignore any possible state corporate taxes). Recall that 50% of dividends received are tax exempt. Pod the after-tax rates of return on all three securities after paying federal corporate taxes. Round your answers to three decimal places, After-tax rate of return on AT&T bond: After-tax rate of return on AT&T preferred stock: After-tax rate of return on Florida muni bonds: 56

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