Q7. The Omega Corporation

The Omega Corporation has some excess cash It would IIke to Invest In marketable securitles for a long-term hold. Its VIce-President of Finance is considering three investments: (a) Treasury bonds at a 7 percent yleld; (b) corporate bonds at a 12 percent yleld; or (C) preferred stock at an 8 percent yleld. Omega Corporation is in a 35 percent tax bracket and the tax rate on dividends is 20 percent. a-1. Compute the aftertax ylelds for the three investment options. Note: Do not round Intermedlate calculatlons. Input your answers as a percent rounded to 2 decimal places. a-2. Which one of the three Investments should she select based on the aftertax ylelds? Corporate bond Treasury bonds Preferred stock