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Consider a C corporation. The corporation earns $3.25 per share before taxes. After the corporation has paid its corresponding taxes, it will distribute 50% of

Consider a C corporation. The corporation earns $3.25 per share before taxes. After the corporation has paid its corresponding taxes, it will distribute 50% of its earnings to its shareholders as a dividend. The corporate tax rate is 40%, the tax rate on dividend income is 13%, and the personal income tax rate is set at 30%. How much is the total effective tax rate on the corporation earnings?

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