A & K Co. expects to have earnings before taxes of $250,000 to $300,000. The company's marginal tax rate is 39% and its average tax rate about 33%. For every additional dollar A & K's pays out in common dividends, it's income tax liability will

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Dividend payments do not affect a company's income tax liability because dividends are paid out of after-tax income.

A & K Co Expects to Have Earnings Before Taxes of $250,000 to of $250,000