Solved

Windsor Windows Earns $4

Question 26

Multiple Choice

Windsor Windows earns $4.50 per share before taxes and pays a dividend of $2.00 per share.The corporate tax rate is 30%,the personal tax rate on dividends is 15%,and the personal tax rate on non-dividend income is 40%.What is the after-tax amount an individual would receive per share from the dividend?


A) $2.68
B) $2.15
C) $1.35
D) $1.65
E) $1.70

Correct Answer:

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