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The following information relates to Doe Corporation: Interest received $10,000 Interest paid $45,000 Dividends received $20,000 Dividends paid $40,000 Operating income $200,000 Income tax rate
The following information relates to Doe Corporation:
| Interest received | $10,000 |
| Interest paid | $45,000 |
| Dividends received | $20,000 |
| Dividends paid | $40,000 |
| Operating income | $200,000 |
| Income tax rate | 40% |
If 70% of dividends received are exempt from taxes, what is the corporation's income after taxes and interest?
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Entrepreneurial Finance
Authors: Chris LeachJ LeachRonald Melicher
3rd Edition
0324561253, 9780324561258
