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maxonik [38]
2 years ago
14

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

dent of Finance is considering three investments: (a) Treasury bonds at a 11 percent yield; (b) corporate bonds at a 14 percent yield; or (c) preferred stock at an 12 percent yield. Omega Corporation is in a 40 percent tax bracket and the tax rate on dividends is 10 percent.
Required:
a. Compute the after-tax yields for the three investment options. (Do not round intermediate calculations. Input your answers as a percent rounded to 2 decimal places.)
b. Which one of the three investments should she select based on the after-tax yields?
Business
1 answer:
Leokris [45]2 years ago
4 0

Answer:1

Explanation:

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