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What dividend yield would a dividend-paying stock have

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Assume that Keisha's marginal tax rate is 40% and her tax rate on dividends is 10%. If a city of Atlanta bond pays 7.02% interest, what dividend yield would a dividend-paying stock (with no growth potential) have to offer for Keisha to be indifferent between the two investments from a cash-flow perspective?

Reference no: EM132359711

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