Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You own 4 9 % of Acme Corporation, a C - Corp. Its earnings before taxes are $ 1 0 , 0 0 0 ,

You own 49% of Acme Corporation, a C-Corp. Its earnings before taxes are $10,000,000. The corporate tax rate is 24%. The personal tax rate on dividends is 16%. Acme Corporation pays out all of its earnings as dividends. What are your after-tax earnings on the dividends?
Enter your answer in dollars but do not include the dollar sign ($). Do not include commas.
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions