What is the preferred stock-s after-tax return


A company with a 39% taxrate buys preferred stock in another company. The preferred stockhas a before-tax yield of 9%. What is the preferred stock's after-tax return?

i) 8.66%

ii) 6.12%

iii) 7.95%

iv) 9.38%

v) 6.75%

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Finance Basics: What is the preferred stock-s after-tax return
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