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Granville Co. recently purchased several shares of Kalvaria Electronics' preferred stock. The preferred stock has a before-tax yield of 7.00%. If the company's tax rate

Granville Co. recently purchased several shares of Kalvaria Electronics' preferred stock. The preferred stock has a before-tax yield of 7.00%. If the company's tax rate is 24%, what is Granville Co's after-tax yield on the preferred stock? Assume a 50% dividend exclusion for tax on dividends.

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