Question
If the corporate tax rate is 35% and the personal tax rate on dividends is 20%, what will be the net dividends (per share) for
If the corporate tax rate is 35% and the personal tax rate on dividends is 20%, what will be the net dividends (per share) for shareholders in C corporation and S corporation?
Corporation Type | Income before Taxes | # of outstanding shares | Payout Rate |
C | $20,000 | 10,000 | 100% |
S | $20,000 | 1,000 | 100% |
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Financial Reporting and Analysis
Authors: Flawrence Revsine, Daniel Collins, Bruce, Mittelstaedt, Leon
6th edition
9780077632182, 78025672, 77632184, 978-0078025679
