Question
QUESTION 4 Consider a C corporation. The corporation earns $1 per share before taxes. After the corporation has paid its corresponding taxes, it will distribute
QUESTION 4
"Consider a C corporation. The corporation earns $1 per share before taxes. After the corporation has paid its corresponding taxes, it will distribute 30% of its earnings to its shareholders as a dividend. The corporate tax rate is 35%, the tax rate on dividend income is 28%, and the personal income tax rate is set at 28%. How much is the total effective tax rate on the corporation earnings?
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The Economics Of Money Banking And Financial Markets
Authors: Frederic S. Mishkin
11th Global Edition
1292094184, 978-1292094182
