The shrives corporation has 10000that it plans to invest in


The Shrives corporation has $10,000that it plans to invest in marketable securities. It is choosing among AT &T bonds, which yield 7.5% state of Florida muni bonds, which yield 5% (but are not taxable), and AT&T preferred stock, with a dividend yield of 6%. Shrieves's corporate tax rate is 35%, and 70% of the dividends received are tax exempt. Find the after-tac rates of retrn on all three securities.

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