MNO preferred stocks pays dividend of $2 per year and gas a price of $20. If MNO's tax rate is 40%, the Aftertax rate of return om its preferred stock is:

MNO preferred stocks pays dividend of $2 per year and gas a price of $20. If MNO's tax rate is 40%, the Aftertax rate of return om its preferred stock is:



Answer: 10%


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