Which provides the highest after-tax return for nash corp

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Reference no: EM13272322

The Nash Corp. is considering four investments. Which provides the highest after-tax return for Nash Corp. if it is in the 40% federal tax bracket? Assume the tax rate on dividends is 15%.

a. Treasury bonds at 4%
b. Corporate bonds at 7.5%
c. Municipal bonds at 7.25
d. Preferred stock at 7.5%

Reference no: EM13272322

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