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A corporation recently purchased some preferred stock that has a before-tax yield of 8.5%. The company...

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Finance

A corporation recently purchased some preferred stock that has abefore-tax yield of 8.5%. The company has a tax rate of 40%. Whatis the after-tax return on the preferred stock? A. 7.48% B. 6.65%C. 7.04% D. 7.74% E. 7.28%

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