Benes Corporation's tax rate is 25% and they recently purchased $45 , 000 in preferred stock from Davola Inc. Davola's preferred stock offers a 7% yield. What is Benes' after-tax yield on Davola preferred stock?
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Benes Corporation's tax rate is 25- and they recently purchased $45-00.docx
1. Benes Corporation's tax rate is 25% and they recently purchased $45 , 000 in preferred stock
from Davola Inc. Davola's preferred stock offers a 7% yield. What is Benes' after-tax yield on
Davola preferred stock?