Tremaine would like to organize UTA as either an S Corporation or a C corporation. In either form, the entity will generate a 9 percent annual before-tax return on a $1,000,000 investment. Tremaines marginal income tax rate is 37 percent and his tax rate on dividends and capital gains is 23.8 percent (including the net investment income tax). If Tremaine organizes UTA as an S corporation he will be allowed to claim the deduction for qualified business income. Also, because Tremaine will participate in UTAs business activities, the income from UTA will not be subject to the net investment income tax. Assume that UTA will pay out 100 percent of its after- tax earnings every year as a dividend if it is formed as a C corporation. (Round your intermediate computations to the nearest whole dollar amount.)

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d. What is the overall tax rate on UTAs income if UTAs income is not qualified business income and Tremaine is a passive investor in UTA? (Round your final answers to 1 decimal place.)