Multiple Choice
The Harsanyi Corp. is considering four investments. Which provides the highest after-tax return for Harsanyi Corp. if it is in the 21% federal tax bracket? Assume the tax rate on dividends is 15%.
A) Treasury bonds at 5.0%
B) Corporate bonds at 8.0%
C) Municipal bonds at 5.0%
D) Preferred stock at 6.0%
Correct Answer:
Verified
Correct Answer:
Verified
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