Answer the following questions based on the different circumstances.

A. Susan Brown has decided that she would like to go back to school after her kids leave home in five years. To save for her education, Susan would like to invest $12,000 in an investment that provides a high return. If her marginal tax rate is 30 percent, what is Susan's after-tax rate of return for the following investment options? Qualified dividends are taxed at 15 percent. (1) Corporate bond issued at face value with 13 percent stated interest rate payable annually (2) Dividend-paying stock with an annual qualifying dividend equal to 7% of her investment (3) Growth stock with an annual growth rate of 5.4 percent and no dividends paid. (Do not round intermediate computations.)

B.

Susan Brown has decided that she would like to go back to school after her kids leave home in five years. To save for her education, Susan would like to invest $24,000 in an investment that provides a high return. If her marginal tax rate is 40 percent, what is Susan's after-tax rate of return for the following investment options? Qualified dividends are taxed at 15 percent. (1) Corporate bond issued at face value with 14 percent stated interest rate payable annually (2) Dividend-paying stock with an annual qualifying dividend equal to 7% of her investment (3) Growth stock with an annual growth rate of 7.8 percent and no dividends paid. (Do not round intermediate computations.)