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A company with a 15% tax rate buys preferred stock in another company. The preferred stock has a before-tax yield of 8%. What is

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A company with a 15% tax rate buys preferred stock in another company. The preferred stock has a before-tax yield of 8%. What is the preferred stock's after-tax return? 6.90% 7.26% 7.64% 8.02% 8.42%

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