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Suppose you own 1,000 shares in a C corporation. The corporation earns $2 .50 per share before taxes. Once it has paid taxes it will
Suppose you own 1,000 shares in a C corporation. The corporation earns $2.50 per share before taxes. Once it has paid taxes it will distribute the rest of its earnings to you as a dividend. Assume the corporate tax rate is 21% and the personal tax rate on both dividend and non-dividend income is 30%.
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