Assume that Shavonne's marginal tax rate is 37 percent and her tax rate on dividends is 10 percent. If a corporate bond pays 9.2 percent interest, what dividend yield would a dividend-paying stock (with no growth potential) have to offer for Shavonne to be indifferent between the two investments from a cash-flow perspective?

Multiple Choice

• 5.31 percent

• 6.44 percent

• 9.20 percent

• 10.00 percent

• None of the choices are correct.