Find the after-tax preferred yield

Reference no: EM1364080

XYC Corporation is issuing preferred stock yielding at 10%, and ABC Corp. is considering buying the stock. XYZ's tax rate is 20% and ABC's tax rate is 34%. What is the after-tax preferred yield for ABC?

A)3.4%
B)10.0%
C)6.6%
D)8.98%

Reference no: EM1364080

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