A Company with a 25% Tax Rate Buys Preferred Stock

A company with a 25% tax rate buys preferred stock in another company.The preferred stock has a before-tax yield of 6.00%.Assume a 50% dividend exclusion for tax on dividends.What is the preferred stock's after-tax return? (Round your final answer to two decimal places. )

A) 4.52%
B) 4.36%
C) 5.25%
D) 4.31%
E) 5.85%