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GE Corporation has a corporate tax rate equal to 40%. The company recently purchased preferred stock in another company. The preferred stock has an 9%
GE Corporation has a corporate tax rate equal to 40%. The company recently purchased preferred stock in another company. The preferred stock has an 9% before-tax yield. What is GEs after-tax yield on the preferred stock?
6.54%
7.92%
8.28%
7.64%
8.19%
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