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i need only Aswers of question 2 and answer Of question 3 (question 1 i donot need itis answer Exercise 1. You are a shareholder
i need only Aswers of question 2 and answer Of question 3 (question 1 i donot need itis answer
Exercise 1. You are a shareholder in a corporation. The corporation earns $20 per share before taxes. After it has paid taxes, it will distribute the rest of its carnings to you as a dividend. The dividend is income to you, so you will then pay taxes on these earnings. The corporate tax rate is 35% and your tax rate on dividend income is 10%. 1. Calculate the corporation earnings after taxes. 2. Calculate the tax amount on your dividend. 3. After paying taxes, what will be your eamings amount? 4. How much of the earnings remains after all taxes are paid 5. Calculate the total effective tax rate. Exercise 2. You are a shareholder in a Scorporation. The corporation carns $20 per share before taxes, all earnings are distributed to you as a dividend. The dividend is income to you, so you will then pay taxes on these earnings. The tax rate on dividend income is 10% 1. Calculate the tax amount on your dividend. 2. After paying taxes, what will be your earnings amount? 3. Compare your results to the results of Exercise 1. Exercise 3. You are a shareholder in a corporation. The corporation carns $15 per share before taxes. After it has paid taxes, it will distribute the rest of its carnings to you as a dividend (we make this simplifying assumption but should note that most corporations retain some of their earnings for reinvestment). The dividend is income to you, so you will then pay taxes on these carnings. The corporate tax rate is 35% and your tax rate on dividend income is 20% 1. Calculate the corporation earnings after taxes. 2. Calculate the tax amount on your dividend. 3. After paying taxes, what will be your earnings amount? 4. How much of the earnings remains after all taxes are paid? 5. Calculate the total effective tax rate Step by Step Solution
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