Suppose you are shareholder in a C$-$corporation. The corporation earned $$10\mathrm{.}00$ per share this past quarter and plans to pay out all earnings as dividends. If the corporate tax rate is $38\%$ and your personal tax rate on dividend income is $20\%,$ what earnings remain for you after paying taxes? LO$3$

You keep $$8\mathrm{.}00$ of the original $$10\mathrm{.}00$ in earnings.

You keep $$4\mathrm{.}96$ of the original $$10\mathrm{.}00$ in earnings.

You keep $$10\mathrm{.}00$ because C$-$corp owners do not owe personal taxes on the corporation's earnings.

You keep $$6\mathrm{.}40$ of the original $$10\mathrm{.}00$ in earnings.