Please work out the problem!

Mantle Corporation is considering two equally risky investments:

A $5,000 investment in preferred stock that yields 8.05%.

A $5,000 investment in a corporate bond that yields 10.70%.

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. 39.70%

b. 62.38%

c. 75.23%

d. 60.30%

e. 24.77%