Assume That Shavonne's Marginal Tax Rate Is 50% and Her

Assume that Shavonne's marginal tax rate is 50% and her tax rate on dividends is 15%. If a corporate bond pays 10.2% interest, what dividend yield would a dividend-payingstock (with no growth potential) have to offer for Shavonne to be indifferent between the two investments from a cash-flow perspective?

A) 10.2%.
B) 6%.
C) 15%.
D) 7%.
E) None of the choices are correct.