Investor As personal tax rate is 25 percent while Investor Bs is 29 percent Investor A owns 100 shares of SNS Company and receives an annual dividend of $1 60 per share Investor B owns 100 shares of CGC Company and receives an annual dividend of $1 36 per share Which investor receives the larger af...

We can calculate the aftertax dividend amount by multiplying the di ...

Investor As personal tax rate is 25 percent while Investor Bs is 29 percent. Investor A owns

Question:

Investor A’s personal tax rate is 25 percent while Investor B’s is 29 percent. Investor A owns 100 shares of SNS Company and receives an annual of $1.60 per share. Investor B owns 100 shares of CGC Company and receives an annual of $1.36 per share. Which investor receives the larger after-tax amount?

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...