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johnpaech johnpaech
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6 years ago
You own 100 shares of a "C" corporation.  The corporation earns $5.00 per share before taxes.  Once the corporation has paid any corporate taxes that are due, it will distribute the rest of its earnings to its shareholders in the form of a dividend.  If the corporate tax rate is 40% and your personal tax rate on (both dividend and non-dividend) income is 30%, then how much money is left for you after all taxes have been paid?
A) $210
B) $300
C) $350
D) $500
Textbook 
Corporate Finance: The Core

Corporate Finance: The Core


Edition: 4th
Authors:
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pbrown223pbrown223
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6 years ago
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johnpaech Author
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5 years ago
You took a load off my back, thanks for answering correctly
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