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You are a shareholder in a corporation. The corporation earns $4 per share before taxes. Once it has paid taxes it will distribute the rest

You are a shareholder in a corporation. The corporation earns $4 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 34% and the personal tax rate on dividend income is 25%.

1. How much is left for you after all taxes are paid?

2. What is your total effective tax rate?

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