You are a shareholder in a corporation. The corporation earns $2.00 per share before taxes. Once it

Question:

You are a shareholder in a corporation. The corporation earns $2.00 per share before taxes. Once it has paid taxes, it will distribute the rest of its earnings to you as a dividend. The corporate tax rate is 34%, the personal tax rate on dividend income is 18%, and the personal tax rate on ordinary income is 40%. How much is left for you after all taxes are paid?

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... 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...