20) A C corporation earns $8.30 per share before taxes and the company pays a dividend of $2.00 per share. Thecorporate tax rate is 39%, the personal tax rate on dividends is 18%, and the personal tax rate on non-dividendincome is 36%. What is the after-tax amount an individual would receive from the dividend?A) $1.49B) $1.28C) $1.22D) $1,64

Dividend = d = $2Corporate Tax Rate = ct = 39%

Answered: 20) A C corporation earns $8.30 per…

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter6: Accounting For Financial Management

Section: Chapter Questions

Problem 8P

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