Question
You own 9% of Acme Corporation. Its earnings before taxes are $10,000,000. The corporate tax rate is 38%. The personal tax rate on dividends is
You own 9% of Acme Corporation. Its earnings before taxes are $10,000,000. The corporate tax rate is 38%. The personal tax rate on dividends is 23%. Acme Corporation pays out all of its earnings as dividends. What are your after-tax earnings on the dividends? Answer to the nearest dollar.
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Foundations Of Financial Markets And Institutions
Authors: Franco Modigliani, Frank J. Jones, Michael G. Ferri, Frank J. Fabozzi
3rd Edition
0130180793, 978-0130180797
