Granville Co. recently purchased several shares of Kalvaria Electronics' preferred stock. The preferred stock has a before-tax

Question

Granville Co. recently purchased several shares of Kalvaria Electronics' preferred stock. The preferred stock has a before-tax yield of 8.60%. If the company's
tax rate is 15%, what is Granville Co.'s after-tax yield on the preferred stock? Assume a 70% dividend exclusion for tax on dividends. (Round your final answer
to two decimal places.)
a. 9.53%
b. 7.47%
c. 8.95%
d. 8.21%
e. 8.79%

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