Question
1. A corporation earns $18 per share before tax, has a 30% corporate tax rate, and a dividend payout ratio of 50%. How much will
1. A corporation earns $18 per share before tax, has a 30% corporate tax rate, and a dividend payout ratio of 50%. How much will a shareholder with a 20% marginal tax rate receive?
2. An S corporation earns $13073 before tax and distributes 80% to its owner, retaining the remainder in the firm. How much tax will the owner with a 30% tax rate pay?
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Public Finance In Canada
Authors: Harvey Rosen, Beverly George Dahlby, Roger Smith, Jean-Francois Wen, Tracy Snoddon
3rd Canadian Edition
0070951659, 978-0070951655
