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You are a unitholder in a real estate investment trust (REIT). The REIT earns $4 per share before taxes. Once it has paid taxes, it
You are a unitholder in a real estate investment trust (REIT). The REIT earns
$4
per share before taxes. Once it has paid taxes, it will distribute the rest of its earnings to the unitholders as dividends. The corporate tax rate is
40%,
the personal tax rate on dividend income is
30%,
and the personal tax rate on other income is
41%.
How much is left for you after all taxes are paid?
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