Lovell Company purchased preferred stock in another company. The preferred stock's before-tax yield was 9.60%. The corporate tax rate is 25%. What is the after-tax return on the preferred stock, assuming a 50% dividend exclusion? (Round your final answer to two decimal places.)

a. 6.00%

b. 7.20%

c. 4.80%

d. 2.40%

e. 8.40%