Question
Consider a C corporation. The corporation earns $9 per share before taxes. After the corporation has paid its corresponding taxes, it will distribute 88% of
Consider a C corporation. The corporation earns $9 per share before taxes. After the corporation has paid its corresponding taxes, it will distribute 88% of its earnings to its shareholders as a dividend. The corporate tax rate is 43%, the tax rate on dividend income is 28%, and the personal income tax rate is set at 26%. How much is the total effective tax rate on the corporation earnings?
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Financial Markets Instruments And Institutions
Authors: Anthony M. Santomero, David Babbel
2nd Edition
0072358688, 9780072358681
