Question
Calculate the TOTAL amount of taxes the IRS (i.e., Uncle Sam) will receive this year from a company that pays a corporate tax rate of
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Calculate the TOTAL amount of taxes the IRS (i.e., "Uncle Sam") will receive this year from a company that pays a corporate tax rate of 28% AND from the company's investors (i.e., its debtholders and stockholders), when each of these two investor groups is taxed at a rate of 43%. Assume that this year the company's EBIT will be $599,000 and its interest expense will be $227,000 and also assume that all the company's net income will be received by the stockholders as a dividend. Round your answer to the nearest dollar. Thus, if you believe the answer is $2,348.55 then write 2349 as your answer. (Points: all if error <= $5,000; half if error <= $10,000; none otherwise)
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