QUESTION 3: Alpha Limited, a major Canadian corporation currently has outstanding series 4.5, nonconvertible preferred stock that pays an annual dividend of $45. The company also has 9% coupon bonds outstanding maturing in 10 years. The stock and bonds have about the same risk. a. The current price of 4.5 preferred stock is S64.30. What is the dividend yield? b. The bonds were sold at par, what is the yield to maturity? c. As a financial consultant, you want to know the after tax yields of each of these investments. The corporate tax rate is 40%, the personal tax rate on interest income is 40%, and the personal tax rate on dividend income is 30%. Compute the after tax yield on preferred stock and the bond for 1. A tax exempt pension plan. 2. Another Canadian corporation 3. The CEO of another Canadian corporation Which group do you believe owns the most preferred stock? d