Alachua county tax-free municipal bonds yielding 6 percent, Ask an Expert

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West Corporation has $50,000 which it plans to invest in marketable securities. The corporation is choosing between the following three equally risky securities: Alachua County tax-free municipal bonds yielding 6 percent; Exxon bonds yielding 9.5 percent; GM preferred stock with a dividend yield of 9 percent. West's corporate tax rate is 35 percent. What is the after-tax return on the best investment alternative?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M973093

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