Calculate the after-tax return on the securities

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1. Please calculate the after-tax return on the following securities for a company that is in the 30% federal tax bracket. Assume the tax rate on dividends is 15%.

Treasury bonds at 5%

Corporate bonds at 8.25%

Municipal bonds at 7%

Preferred stock at 6.5%

2. In 2017, Elaine paid $2,160 of tuition and $900 for books for her dependent son to attend State University this past fall as a freshman. Elaine files a joint return with her husband. What is the maximum American opportunity credit that Elaine can claim for the tuition payment and books in each of the following alternative situations? (Round your intermediate calculations to two decimal places and final answer to the nearest whole dollar amount. Leave no answer blank. Enter zero if applicable.)

a. Elaine’s AGI is $89,250.

b. Elaine’s AGI is $165,500

c. Elaine’s AGI is $189,000.

Reference no: EM132066679

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