Dennis is currently considering investing in municipal bonds that earn 4.25 percent interest, or in taxable bonds issued by the Coca-Cola Company that pay 5.0 percent.

a. If Denniss tax rate is 10 percent, which bond should he choose?

Municipal Bonds

Taxable bonds

b. Which bond should he choose if his tax rate is 20 percent?

Municipal bonds

Taxable bonds

c. At what tax rate would he be indifferent between the bonds?

Tax rate _____%

d. What strategy is this decision based upon?

Development planning strategy

Business planning strategy

Decision planning strategy

Marketing planning strategy

Conversion planning strategy

Timing strategy

come shifting strategy