Question
You are a shareholder in a C corporation. The corporation earns $2.32 per share before taxes. Once it has paid taxes, it will distribute the
You are a shareholder in a C corporation. The corporation earns $2.32 per share before taxes. Once it has paid taxes, it will distribute the rest of its earnings to you as a dividend. The corporate tax rate is 36%, and your personal tax rate on (both dividend and non-dividend) income is 25%.
How much is left for you after all taxes arepaid?
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Fundamentals Of Corporate Finance
Authors: Richard A. Brealey, Marcus, Alan J, Myers, Stewart C.
2nd Edition
0070074860, 9780070074866
