Van Dyke Corporation Has a Corporate Tax Rate Equal to 30%.The

question 30

Multiple Choice

Van Dyke Corporation has a corporate tax rate equal to 30%.The company recently purchased preferred stock in another company.The preferred stock has an 8% before-tax yield.What is Van Dyke's after-tax yield on the preferred stock?

• A)6.57%
• B)6.92%
• C)7.28%
• D)7.64%
• E)8.03%

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