Question
You are a shareholder in a C corporation. The corporation earns $2.24 per share before taxes. Once it has paid taxes it will distribute the
You are a shareholder in a C corporation. The corporation earns
$2.24
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
40%
and the personal tax rate on (both dividend and non-dividend) income is
20%.
How much is left for you after all taxes arepaid?
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Investments
Authors: Zvi Bodie, Alex Kane, Alan J. Marcus
9th Edition
73530700, 978-0073530703
