Your corporation has a marginal tax rate of 25% and has purchased preferred stock in another company. The before-tax dividend yield on the preferred stock is 9.25%. What is the company's after-tax return on the preferred, assuming a 50% dividend exclusion? (Round your final answer to two decimal places.)

Group of answer choices

8.09%

8.74%

6.80%

9.87%

8.66%