Question: Alva can earn 4 . 5 % before - tax interest on a corporate bond or a 4 % dividend on a preferred stock. Assuming

Alva can earn 4.5% before-tax interest on a corporate bond or a 4% dividend on a preferred stock. Assuming that the appreciation in value is the same, which investment produces the greater after-tax income?
The bond yields the greater after-tax return.The stock yields the greater after-tax return.

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