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You are an investor in Morgan Sachs. Morgan Sachs earns $3.00 per share after tax and distributes all of its earnings to its shareholders in

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You are an investor in Morgan Sachs. Morgan Sachs earns $3.00 per share after tax and distributes all of its earnings to its shareholders in the form of a dividend. The corporate tax rate is 30%, the personal tax rate on dividend income is 20%, and the personal tax rate on ordinary income is 35%. How much money per share will you receive after all taxes are paid (assume you are holding the investment in a non- registered account)? $1.05 $2.10 $1.68 $2.40 $2.96

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