A company with a 39 tax rate buys preferred stock in


A company with a 39% tax rate buys preferred stock in another company. The preferred stock has a before-tax yield of 9%. What is the preferred stock's after-tax return?

Answer

8.66%
6.12%
7.95%
9.38%
6.75%

 

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Finance Basics: A company with a 39 tax rate buys preferred stock in
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