Van dyke corporation has a corporate tax rate equal to 36


Van Dyke Corporation has a corporate tax rate equal to 36%. 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?

a. 5.78%
b. 7.14%
c. 5.92%
d. 6.78%
e. 8.49%

 

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Finance Basics: Van dyke corporation has a corporate tax rate equal to 36
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