Question
QUESTION 4 Consider a C corporation. The corporation earns $13 per share before taxes. After the corporation has paid its corresponding taxes, it will distribute
QUESTION 4
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Consider a C corporation. The corporation earns $13 per share before taxes. After the corporation has paid its corresponding taxes, it will distribute 58% of its earnings to its shareholders as a dividend. The corporate tax rate is 35%, the tax rate on dividend income is 25%, and the personal income tax rate is set at 22%. How much is the total effective tax rate on the corporation earnings?
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Investments An Introduction
Authors: Herbert B Mayo
11th Edition
1133936520, 9781133936527
