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The Harsanyi Corp. is considering four investments. Which provides the highest after-tax return for Harsanyi Corp. if it is in the 34% federal tax bracket?

The Harsanyi Corp. is considering four investments. Which provides the highest after-tax return for Harsanyi Corp. if it is in the 34% federal tax bracket? Assume the tax rate on dividends is 15%.

Treasury bonds at 5.0%

(WRONG) Corporate bonds at 8.0%

Municipal bonds at 5.0%

Preferred stock at 6.0%

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