A corporate investor of preferred stock receiving a before-tax preferred yield of 8.5%, and having a corporate tax rate of 21%, would receive an after-tax preferred yield of approximately ________. Assume the tax rate on dividends is 15%.
A) 10.2%
B) 7.7%
C) 8.12%
D) 9.3%
C) 8.12%
After-tax preferred yield = Before-tax preferred stock yield × [1 ? (Tax rate) (Taxable amount of dividends) = 0.085 × [1 ? (0.15) (0.30)] = 8.12%
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List the circumstances that can lead to termination by impossibility of performance
What will be an ideal response?
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