The Shrieves Corporation has $10,000 that it plans to invest in marketable securities. It is...
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The Shrieves Corporation has $10,000 that it plans to invest in marketable securities. It is choosing among AT&T bonds, which yield 6%, state of Florida muni bonds, which yield 3%, and AT&T preferred stock, with a dividend yield of 4%. Shrieves's corporate tax rate is 40%. Find the after-tax rates of return on all three securities and rank them from the highest to the lowest. AT&T bonds > AT&T preferred stock > Florida muni bonds AT&T preferred stock > AT&T bonds > Florida muni bonds Florida muni bonds > AT&T bonds > AT&T preferred stock AT&T bonds > Florida muni bonds > AT&T preferred stock Florida muni bonds > AT&T preferred stock > AT&T bonds
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