What dividend yield would a dividend-paying stock

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Problem - Assume that Shavonne's marginal tax rate is 37 percent and her tax rate on dividends is 20 percent. If a corporate bond pays 6.4 percent interest, what dividend yield would a dividend-paying stock (with no growth potential) have to offer for Shavonne to be indifferent between the two investments from a cash-flow perspective?

Reference no: EM133034041

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