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Buggy Whip Manufacturing Company is issuing preferred stock yielding 9%. Selten Corporation is considering buying the stock. Buggy's tax rate is 0% due to continuing
Buggy Whip Manufacturing Company is issuing preferred stock yielding 9%. Selten Corporation is considering buying the stock. Buggy's tax rate is 0% due to continuing heavy tax losses, and Selten's tax rate is 35%. What is the after-tax preferred yield for Selten? (Round your answer to 2 decimal places.) |
6.56
10.16
9.20
8.06
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