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Van Dyke Corporation has a corporate tax rate equal to 2 5 % . The company recently purchased preferred stock in another company. The preferred

Van Dyke Corporation has a corporate tax rate equal to 25%. The company recently purchased preferred stock in another company. The preferred stock has an 8% before-tax yield. What is Van Dyke's after-tax yield on the preferred stock? Assume a 50% dividend exclusion for taxes on dividends. (Round your final answer to two decimal places.)
a.7.00%
b.4.00%
c.5.00%
d.6.00%
e.2.00%
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