Explain after-tax returns

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Reference no: EM1399557

Explain After-tax returns
West Corporation has $50,000 which it strategies to invest in marketable securities. The corporation is choosing among the following three equally risky securities- Alachua County tax-free municipal bonds yielding six percent Exxon bonds yielding 9.5 percent, GM preferred stock with a dividend yield of 9 percent. West's corporate tax rate is 35 percent. Explain what is the after-tax return on the best investment alternative? Presume the company chooses on the basis of after-tax returns.

Reference no: EM1399557

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