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please check my work ? Problem 1-6 You are a shareholder in a C corporation. The corporation earns $2 per share before taxes. Once it
please check my work ?
Problem 1-6 | |||||
You are a shareholder in a C corporation. The corporation earns $2 per share before taxes. Once it has paid taxes it will distribute the rest of its earnings to you as a dividend. The corporate tax rate is 40% and the personal tax rate on (both dividend and non-dividend) income is 30%. How much is left for you after all taxes are paid? | |||||
Corporate Tax Rate | 40% | ||||
Personal Tax Rate | 30% | ||||
Earnings per share | $2.00 | ||||
Remaining after corporate tax | $0.80 | ||||
Remaining after all taxes | $0.84 | ||||
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