A company with a 25% tax rate buys preferred stock in another company. The preferred stock has a before-tax vield of 6.00%. Assume a 50% dividend exclusion for tax on dividends. What is the preferred stock's after-tax return? (Round your final answer to two decimal places.) a. 4.31% b. 5.85% O c. Od. 4.52% Oe. 5.25% 4.36%
