After completing its capital spending for the year, Carlson Manufacturing has $1,100 extra cash. Carlson's managers must choose between investing the cash in Treasury bonds that yield 6 percent or paying the cash out to investors who would invest in the bonds themselves. Required: (a) Suppose the only investment choice is a preferred stock that yields 7 percent. The corporate dividend exclusion of 70 percent applies. What personal tax rate will make the stockholders indifferent to the outcome of Carlson's dividend decision? (Round your answer to 2 decimal places.) Personal tax rate: