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Buggy Whip Manufacturing Company is issuing preferred stock yielding 1 9 % . Selten Corporation is considering buying the stock. Assume that Buggy's tax rate

Buggy Whip Manufacturing Company is issuing preferred stock yielding 19%. Selten Corporation is considering buying the stock. Assume that Buggy's tax rate is 0% due to continuing heavy tax losses, and Selten's tax rate is 30%. What is the after-tax preferred yield for Selten? Assume 15% of the dividends are taxable.
Note: Round your answer to 2 decimal places.
Multiple Choice
16.64
20.25
18.14
19.29
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