Arvo Corporation is trying to choose between three alternative investments. The three securities that the company is considering are as follows: Tax-free municipal bonds with a return of 8.80% Wooli Corporation bonds with a return of 11.70% CFI Corp. preferred stock with a return of 9.80%. The company's tax rate is 25.00%. What is the after-tax return on the best investment alternative? Assume a 50.00% dividend exclusion for tax on dividends. (Round your final answer to 3 decimal places.) O a. O b. 8.800% 10.296% O c. O d. 7.128% O e. 9.944% 8.888%
