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Buggy Whip Manufacturing Company is issuing preferred stock yielding 9%. Selten Corporation is considering buying the stock. Assume that Buggy's tax rate is 0% due

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Buggy Whip Manufacturing Company is issuing preferred stock yielding 9%. 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 o 7.10 o 10.70 860 0 9.75

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