George Coonney Corporation has $40,000 that is plans to invest in marketable securities. It is choosing between MCA corporate bonds with yield 12%, state of Texas Municipal bonds which yield 8%, and MCA preferred stock with a dividend yield of 9.5%. Cooney's corporate tax rate is 27%, and 70 percent of its dividend received are tax-exempt. What is the after-tax return on the highest yielding security? 8.73% from MCA preferred stocks 8.70% from MCA corporate bonds 8.76% from MCA corporate bonds 8.00% from Texas Municipal bonds 8.77% from MCA preferred stocks