6, Buggy whip Manufacturing Company is issuing preferred stock yielding 8%. Selten Corporation is considering buying the stock. Assume that Buggy's tax rate is 00% due to continuing heavy tax losses, and Selten's tax rate is 34%. What is the after-tax preferred yield for Selten? Assume the tax rate on dividends is 15%. A. 7.2296 B. 5.33% C. 7.64% D. 8.00% 7. Tricki Corp stock sells for $45 rights-on, and the subscription price is $35. Ten rights e uired to purchase one share. Tomorrow the stock of Tricki will go ex-rights. What is expected price when it begins trading ex-rights? A. $47.23 B. $44.00 12. Assume 8 36,500 IhVestment and the following cash flows for two Year Investment X Investment Y $1000 1,800 1.700 4 2.000 $1.300 2.000 1.100 1,500 600 Under the payback method, which of the following could be concluded A. Investment X should be selected B. Investment Y should be selected. C. Investment X and Y provide the same payback period. D. The investments are not comparable since they have different time 13. The Dammon Corp. has the following investment opportunities: Machine A Machine B S22.500 Inflows year 1 $12.000 year 2 7.500 year 3 1.500 year 4 1.500 Machine C (S10.000 Inflows year 1 $6,000 year 2 3,000 year 3 3,000 $35.500 Inflows year 1 $-0- year 2 30,000 year 3 5,000 year 4 20.000 year 4 -0- Under the payback method and assuming these machines an machine(s) would Dammon Corp. choose? Machine A Machine B Machine C Machine A and B