Your corporation has a marginal tax rate of 35% and has purchased preferred stock in another company.The before-tax dividend yield on the preferred stock is 12%.What is the company's after-tax return on the preferred,assuming a 70% dividend exclusion?

Question

Quizplus · Accepted Answer

The Answer of Your corporation has a marginal tax rate of 35% and has purchased preferred stock in another company.The before-tax dividend yield on the preferred stock is 12%.What is the company's after-tax return on the preferred,assuming a 70% dividend exclusion?

Your Corporation Has a Marginal Tax Rate of 35% and Has