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Home Q & A Board Other Fields Homework Help Business Finance
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anhsu anhsu
wrote...
Posts: 498
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4 years ago
A C corporation earns $7.40 per share before taxes.  The corporate tax rate is 39%, the personal tax rate on dividends is 15%, and the personal tax rate on non-dividend income is 36%.  What is the total amount of taxes paid if the company pays a $5.00 dividend?

▸ $2.89

▸ $3.64

▸ $4.00

▸ $0.75
Textbook 
Fundamentals of Corporate Finance

Fundamentals of Corporate Finance


Edition: 2nd
Authors:
Read 161 times
4 Replies

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wrote...
#1
4 years ago
$3.64
anhsu Author
wrote...
#2
4 years ago
Thanks
wrote...
#3
4 years ago
A C corporation earns $7.40 per share before taxes and the company pays a dividend of $5.00 per share.  The corporate tax rate is 39%, the personal tax rate on dividends is 15%, and the personal tax rate on non-dividend income is 36%.  What is the after-tax amount an individual would receive from the dividend?

▸ $3.64

▸ $4.25

▸ $2.89

▸ $0.75
wrote...
#4
4 years ago
$4.25
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