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Lintner Beverage Corp. reported the following information from their financial statements: Operating income (EBIT) = $19,000,000 Interest payments on long-term debt = $2,000,000 Dividend income

Lintner Beverage Corp. reported the following information from their financial statements:

Operating income (EBIT) = $19,000,000
Interest payments on long-term debt = $2,000,000
Dividend income = $950,000
Corporate tax rate = 25%

Assume a 50% dividend exclusion for taxes on dividends. What is the firm's total tax liability?

a. $4,250,000
b. $4,368,750
c. $4,750,000
d. $4,487,500
e. $4,987,500

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