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President of Finance is considering three investments: ( a ) Treasury bonds at a 8 percent yield; ( b ) corporate bonds at a 11
President of Finance is considering three investments: (a) Treasury bonds at a 8 percent yield; (b) corporate bonds at a 11 percent yield; or (c) preferred stock at an 9 percent yield. Omega Corporation is in a 35 percent tax bracket and the tax rate on dividends is 20 percent. a-1. Compute the aftertax yields for the three investment options. (Do not round intermediate calculations. Input your answers as a percent rounded to 2 decimal places.)
Treasury bonds
Corporate bonds
Preferred stock
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