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 8.5%; Exxon Mobil bonds yielding 10.5%; and GM preferred stock with a dividend yield of 9.25%.West's corporate tax rate is 35%.What is the after-tax return on the best investment alternative? (Assume the company chooses on the basis of after-tax returns.)
A)8.500%
B)8.925%
C)9.371%
D)9.840%
E)10.332%

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The Answer of 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 8.5%; Exxon Mobil bonds yielding 10.5%; and GM preferred stock with a dividend yield of 9.25%.West's corporate tax rate is 35%.What is the after-tax return on the best investment alternative? (Assume the company chooses on the basis of after-tax returns.)
A)8.500%
B)8.925%
C)9.371%
D)9.840%
E)10.332%

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