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johnpaech johnpaech
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7 years ago
You are a shareholder in a "C" corporation.  This corporation earns $4 per share before taxes.  After it has paid taxes, it will distribute the remainder of its earnings to you as a dividend.  The dividend is income to you, so you will then pay taxes on these earnings.  The corporate tax rate is 35% and your tax rate on dividend income is 15%.  The effective tax rate on your share of the corporations earnings is closest to:
A) 15%
B) 35%
C) 45%
D) 50%
Textbook 
Corporate Finance: The Core

Corporate Finance: The Core


Edition: 4th
Authors:
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EgorGruzdevEgorGruzdev
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7 years ago
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johnpaech Author
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#2
6 years ago
This course drove me insane!
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#3
5 years ago
ok
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