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Buggywhip manufacturing companies issuing preferred stock, yielding 8%. Sultan corporation is considering buying the stock. Assume that buggies tax rate is 0% due to continuing

Buggywhip manufacturing companies issuing preferred stock, yielding 8%. Sultan corporation is considering buying the stock. Assume that buggies tax rate is 0% due to continuing heavy tax losses and sultans tax is rate is 21%. What is the after tax preferred yield for Sultan? Assume 15% of the dividends are taxable

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