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A C corporation earns $7.1 per share before taxes and the company pays a dividend of $6 per share. The corporate tax rate is 39%,
A C corporation earns $7.1 per share before taxes and the company pays a dividend of $6 per share. The corporate tax rate is 39%, the personal tax rate on dividends is 15%, and the personal tax rate on nondividend income is 36%. What is the aftertax amount an individual would receive from the dividend?
A. $5.1
B. $7.14
C. $4.08
D. $6.12
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