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Assume the corporate tax rate is 15 percent, the personal tax rate on interest income is 15 percent, and the personal tax rate on dividends
Assume the corporate tax rate is 15 percent, the personal tax rate on interest income is 15 percent, and the personal tax rate on dividends is 20 percent. If the firm earns $5 per share in taxable income and pays out 55 percent of its earnings, how much will a shareholder receive in aftertax income? Question 18 options: $1.87 $1.78 $1.97 $1.67 $1.19
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