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    Before tax dividend yield

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    As a bank investor paying a marginal tax rate of 34 percent, if 70 percent of dividends are excludable, what would be your after-tax dividend yield on preferred bank stock with a 16 percent before tax dividend yield?

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    What formula is used to solve this problem?
    As a bank investor paying a marginal tax rate of 34 percent, if 70 ...

    Solution Summary

    Response provides steps to compute before tax dividend yield.

    $2.19

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