Mantle Corporation is considering two equally risky investments:

A $5,000 investment in preferred stock that yields 7.55%.

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. 39.36%

b. 62.25%

c. 75.50%

d. 24.50%

e. 60.64%