Buggy Whip Manufacturing Company is issuing preferred stock yielding 11%. 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 the tax rate on dividends is 15%. (Round your answer to 2 decimal places.)

Multiple Choice

• 10.50

• 9.00

• 11.65

• 12.60