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Best Managed Care Inc. is a for-profit managed care company that serves the southeast of United States. It has $200,000 in surplus funds that it is considering investing in bonds that pay interest $10,000 per year or stock that pays dividends of $9000 per year. Assuming that its marginal tax is 34%, should Best Managed Care invest its surplus in bonds or stock? (Show your work step by step by providing Excel worksheets.)

Financial Management, Finance

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