A company with a 15% tax rate buys preferred stock in another company.The preferred stock has a before-tax yield of 8%.What is the preferred stock's after-tax return?
A)6.90%
B)7.26%
C)7.64%
D)8.02%
E)8.42%

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The Answer of A company with a 15% tax rate buys preferred stock in another company.The preferred stock has a before-tax yield of 8%.What is the preferred stock's after-tax return?
A)6.90%
B)7.26%
C)7.64%
D)8.02%
E)8.42%

A Company with a 15% Tax Rate Buys Preferred Stock