The Harsanyi Corp

question 85

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%

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