1. You are a shareholder in a C corporation. The corporation earns $2.28 per share before taxes. Once it has paid taxes it will distribute the rest of its earnings to you as a dividend. Assume the corporate tax rate is 25% and the personal tax rate on all income is 20%. How much is left for you after all taxes are paid?

The amount that remains is $_______ per share.(Round to the nearest cent.)

2. A______________ is when the managers of a corporation act in a way that benefits themselves at the expense of the shareholders.

.

Manager Influence

B.

Double Taxation

C.

Principal Issue

D.

Agency Problem

ere.