Mantle Corporation is considering two equally risky investments:

A $5,000 investment in preferred stock that yields 6.65%. A $5,000 investment in a corporate bond that yields 10.00%.

What is the breakeven corporate tax rate that makes the company indifferent between the two investments? Assume a 50.00% dividend exclusion for taxes on dividends. (Do not round your intermediate answer and round your final answer to two decimal places.)

a. 49.81%

b. 66.50%

c. 66.75%

d. 50.19%

e. 33.50%