You have an investment choice: $100 into 1) a tax-free muni bond that yields 5.696%, or 2) a property guaranteed to provide you with an 8% dividend yield. The dividend tax rate is 28.8%. Assuming the risk profiles are identical, which investment, if any, do you prefer? [hint: do not over think]
a. tax-free muni bond
b. the property
c. difference between the two
d. insufficient information