Multiple Choice
A corporate investor of preferred stock receiving a before-tax preferred yield of 8.5%, and having a corporate tax rate of 21%, would receive an after-tax preferred yield of approximately ________. Assume the tax rate on dividends is 15%.
A) 10.2%
B) 7.7%
C) 8.12%
D) 9.3%
Correct Answer:
Verified
Correct Answer:
Verified
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