Mary Is Deciding Where to Invest $10,000

Mary is deciding where to invest $10,000. Based on her decision, she will either receive a 5% capital gain or a 7% non-eligible dividend as her return on investment. Mary's marginal tax rates are 45% on regular income, 36% on non-eligible dividends, 28% on eligible dividends, and 23% (rounded) on capital gains. Which of the following is
TRUE?

A) Mary will receive an after-tax rate of return of 3.85% on the capital gain and 4.48% on the non-eligible dividends.
B) There is no difference in the after-tax rate of return on the two investments.
C) Mary will receive a higher after-tax rate of return on the capital gain due to the higher tax rate for non-eligible dividends.
D) Mary will receive an after-tax rate of return of 5% on the capital gain and 7% on the non-eligible dividends.