Find the after-tax rates of return on all three securities

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The Shrieves Corporation has $15,000 that it plans to invest in marketable securities. It is choosing among AT&T bonds, which yield 7.75%, state of Florida muni bonds, which yield 5% (but are not taxable), and AT&T preferred stock, with a dividend yield of 6.75%. Shrieves's corporate tax rate is 40%, and 70% of the dividends received are tax exempt. Find the after-tax rates of return on all three securities. Round your answers to two decimal places.

After-tax rate of return on AT&T bond %
After-tax rate of return on Florida muni bonds %
After-tax rate of return on AT&T preferred stock %

 

Reference no: EM13269655

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