You dedicated $ 500,000 to a registered corporation. The book value of equity

excluded your investment is $ 3,000.000.

When the corporation earns $7 per share at the end of yr1 and keeps 60% dividends.

(a) How much earnings you can get after tax? The corporate tax rate is 30% and individual dividend income tax rate is 15%.

(b) The corporation will stop operating after 5 years. The debts are $600,000, the

assets are $1,000,000. How much you can get after the business is terminated?