Multiple Choice
A company with a 15% tax rate buys preferred stock in another company.The preferred stock has a before-tax yield of 7.50%.Assume a 70% dividend exclusion for tax on dividends.What is the preferred stock's after-tax return? (Round your final answer to two decimal places. )
A) 7.74%
B) 6.95%
C) 7.16%
D) 5.94%
E) 7.09%
Correct Answer:
Verified
Correct Answer:
Verified
Q91: Watson Oil recently reported (in millions)$8,250 of
Q92: The value of any asset is the
Q93: Last year Almazan Software reported $10.500 million
Q94: Assume that Congress recently passed a provision
Q95: Emery Mining Inc.recently reported $125,000 of sales,$75,500
Q97: Salinger Software was founded in 2015.The
Q98: Maureen Smith is a single individual.She
Q99: A corporation recently purchased some preferred stock
Q100: The balance sheet measures the flow of
Q101: The income statement shows the difference between