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A corporation recently purchased some preferred stock that has a before-tax yield of 5.75%. The company has a tax rate of 25%. What is the
A corporation recently purchased some preferred stock that has a before-tax yield of 5.75%. The company has a tax rate of 25%. What is the after-tax return on the preferred stock? Assume a 50% dividend exclusion for tax on dividends. (Round your final answer to two decimal places.)
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