Lovell Co.purchased preferred stock in another company.The preferred stock's before-tax yield was 8.4%.The corporate tax rate is 40%.What is the after-tax return on the preferred stock,assuming a 70% dividend exclusion?

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The Answer of Lovell Co.purchased preferred stock in another company.The preferred stock's before-tax yield was 8.4%.The corporate tax rate is 40%.What is the after-tax return on the preferred stock,assuming a 70% dividend exclusion?

Lovell CoPurchased Preferred Stock in Another Company