(Solved): Van Dyke Corporation has a corporate tax rate equal to 25%. The company recently purchased preferr ...

Van Dyke Corporation has a corporate tax rate equal to 25%. The company recently purchased preferred stock in another company. The preferred stock has a 10.0% before-tax yield. What is Van Dyke's after-tax yield on the preferred stock? Assume a 50% dividend exclusion for taxes on dividends. (Round your final answer to two decimal places.) a. 7.50% O b. 5.00% O c. 8.75% O d. 6.25% O e. 2.50%