West Corporation Has $50,000 That It Plans to Invest in Marketable

question 115

Multiple Choice

West Corporation has $50,000 that it plans to invest in marketable securities.The corporation is choosing between the following three equally risky securities: Alachua County tax-free municipal bonds yielding 8.50%;Exxon Mobil bonds yielding 10.50%;and GM preferred stock with a dividend yield of 9.25%.West's corporate tax rate is 32.00%.What is the after-tax return on the best investment alternative? Assume a 70.00% dividend exclusion for tax on dividends.(Assume the company chooses on the basis of after-tax returns.Round your final answer to 3 decimal places. )

• A) 9.690%
• B) 7.820%
• C) 8.585%
• D) 8.500%
• E) 10.625%

Grasp the adaptation strategies by franchisors to meet changing customer demands.

Identify the best sources of information for evaluating a franchise opportunity.

Understand the role of disclosure statements in franchising and the mandated requirements.

Recognize the financial commitments and obligations of franchisees, including fees and royalties.

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Definitions:

National Government

The organization and institution that possess the political sovereignty and control for a nation or country.

Slavery

A system in which individuals are owned by others, deprived of personal freedom, and forced to work.

Supreme Court

The highest federal court in the United States, with ultimate appellate jurisdiction over all federal courts and direct jurisdiction over some types of cases.

John Marshall

An influential Chief Justice of the Supreme Court (1801-1835) known for establishing the principle of judicial review.