taxable equivalent 8. A treasury manager is examining two possible investment alternatives for the firm's excess cash holdings. Investment A is a taxable money market security with a yield of 3.2%. Investment Bis a muni with a yield of 2.5%. The firm's marginal tax rate is 35%. a. With these base assumptions, which security should the treasury manager choose? b. At what marginal tax rate would the treasury manager be indifferent between the securities 9. A treasury manager is assessing the annual performance of the firm's short-term investment portfolio. The beginning value of the portfolio was $5,200,000. At year-end, the portfolio wa valued at $5,350,000. No investments were purchased over the year as revenues and cash flow dropped, which made it difficult to accumulate additional cash holdings. What is the annual rate of return on the short-term investment portfolio? b. What would the annual rate of return be if the ending value equaled $5,100,000? a