Question: Please help with the wrong answer. The Omega Corporation has some excess cash It would like to invest in marketable securities for a long-term hold.

Please help with the wrong answer.

Please help with the wrong answer. The Omega Corporation has some excess

The Omega Corporation has some excess cash It would like to invest in marketable securities for a long-term hold. Its Vice-President of Finance is considering three Investments: (a) Treasury bonds at a 6 percent yield; (b) corporate bonds at a 11 percent yleld; or (0) preferred stock at an 8 percent yleld. Omega Corporation is in a 40 percent tax bracket and the tax rate on dividends Is 10 percent. a-1. Compute the aftertax ylelds for the three Investment options. (Do not round Intermediate calculations. Input your answers as a percent rounded to 2 decimal places.) Answer is complete but not entirely correct. a. Aftertax yields 3,60 % 6,60 % Treasury bonds Corporate bonds Preferred stock b 7.20 %

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