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 37.00%.What is the after-tax return on the best investment alternative? Assume a 70% 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. )

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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 37.00%.What is the after-tax return on the best investment alternative? Assume a 70% 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. )

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