A corporation recently purchased some preferred stock that has a before-tax yield of 7%.The company has a tax rate of 38%.What is the after-tax return on the preferred stock?
A)5.32%
B)5.60%
C)5.89%
D)6.20%
E)6.51%

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The Answer of A corporation recently purchased some preferred stock that has a before-tax yield of 7%.The company has a tax rate of 38%.What is the after-tax return on the preferred stock?
A)5.32%
B)5.60%
C)5.89%
D)6.20%
E)6.51%

A Corporation Recently Purchased Some Preferred Stock That Has a Before-Tax