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?
A) $0.75
B) $2.89
C) $3.64
D) $4.25
Correct Answer:
Verified
Q19: Over four-fifths of all U.S. business revenue
Q24: Which of the following is NOT a
Q26: What are the main differences between a
Q26: Which of the following organization forms has
Q28: The principal goal of the financial manager
Q30: A C corporation earns $4.50 per share
Q35: The financial manager of a well-regarded book
Q36: What is the process of double taxation
Q37: Which of the following people may not
Q40: It is generally not the duty of
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents