Question
You are a shareholder in a C corporation. The corporation earns $1.68 per share before taxes. Once it has paid taxes it will distribute the
You are a shareholder in a C corporation. The corporation earns $1.68 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 38% and the personal tax rate on (both dividend and non-dividend) income is 20%. How much is left for you after all taxes are paid?
The amount that remains is $_ Per share (round to the nearest cent)
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you are a shareholder in an S corporation. The corporation earns $1.94 per share before taxes. As a pass through entity, you will receive $1.94 for each share that you own. Your marginal tax rate is 25%. How much per share is left for you after all taxes are paid?
Amount that remains is $_ Per Share (round to the nearest cent)
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