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Suppose you invest $ 1 0 0 , 0 0 0 after - tax money in preferred stock paying 6 % dividend per year. The

Suppose you invest $100,000 after-tax money in preferred stock paying 6% dividend per year. The dividend income is taxed at 20%(favorable rate) per year.
a. Which savings vehicle is this?
b. What is the after-tax total dollar accumulation at the end of 10 years?

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