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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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