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A C corporation earns $10 per share before taxes. After it has paid taxes, it will distribute the rest of its earnings as dividends. The
A C corporation earns $10 per share before taxes. After it has paid taxes, it will distribute the rest of its earnings as dividends. The dividend is income to you, so you will pay taxes on these earnings. The corporate tax rate is 40% and your personal dividend tax rate is 15%. How much of the earnings remain after all taxes are paid? a) $0.90 b) $ 4.00 c) $6.00 d) $5.10
Correct answer is C) need to show steps please.
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