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The Omega Corporation has some excess cash it would like to invest in marketable securities for a long-term hold. Its Vice-President of Finance is considering

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The Omega Corporation has some excess cash it would like to invest in marketable securities for a long-term hold. Its Vice-President of Finance is considering three investments: (a) Treasury bonds at a 6 percent yield; (b) corporate bonds at a 13 percent yield; or (a preferred stock at an 10 percent yield Omega Corporation is in a 35 percent tax bracket and the tax rate on dividends is 20 percent 4-1. 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.) Aftertax yields a Troasury bonds Corporate bonds c. Preferred stock 3-2. Which one of the three investments should she select based on the aftertax yields Preferred stock O Treasury bonds Corporate bond

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