Andrea would like to organize SHO as C corporation. The entity is expected to generate an 11 percent annual before-tax return on a $200,000 investment. Andrea's marginal income tax rate is 35 percent and her tax rate on dividends and capital gains is 15 percent. Andrea will also pay a 3.8 percent net investment income tax on dividends and capital gains she recognizes. Further, she is eligible to claim the full deduction for qualified business income. Assume that SHO will pay out all of its after-tax earnings every year as a dividend if it is formed as a C corporation.

How much cash after taxes would Andrea receive from her investment in the first year if SHO is organized a C corporation?

What is the overall tax rate on SHO's income in the first year if SHO is organized as a C corporation?