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Lovell Company purchased preferred stock in another company. The preferred stock earns a $9.00 dividend per share annually. The corporate tax rate is 40%. What

Lovell Company purchased preferred stock in another company. The preferred stock earns a $9.00 dividend per share annually. The corporate tax rate is 40%. What is the after-tax dividend per share to Lovell, assuming a 70% dividend exclusion? (Round your final answer to two decimal places.)

a. $7.92
b. $9.66
c. $6.75
d. $8.50
e. $9.00

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