Question:
West corporation has 50000, which it plans to invest in the marketable sercurities. the corporation is choosing between the following three eually ricl sercurities:alachua county tax free municipal bonds yielding 6 percent; Exxon yielding 9.5 percent; GM preferred stock with dividend yield of 9 percent. West's corporate rate is 35 percent. What is the after-tax return on best investment alternative? (Assume the company chooses on basis of after-tax rerurn.)