Question
A C corporation earns $8.30 per share before taxes and the company pays a dividend of $4.00 per share. The corporate tax rate is 39%,
A C corporation earns $8.30 per share before taxes and the company pays a dividend of $4.00 per share. The corporate tax rate is 39%, the personal tax rate on dividends is 15%, and the personal tax rate on non-dividend income is 36%. What is the after-tax amount an individual would receive from the dividend?
(NOTE: The answer says it's $3.40, but I do not understand how it is the final answer.)
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Dividend Investing Playbook
Authors: Aziz Anderson
1st Edition
1089587228, 978-1089587224
