A C corporation earns $9.10 per share before taxes. The corporate tax rate is 39%, the personal tax rate on dividendsis 15%, and the personal tax rate on non-dividend income is 36%. What is the total amount of taxes paid if thecompany pays a $5 dividend?A. $4.30В. $6.02Ос. $5.16D. $3.44

Earning before share = $9.10 Corporate Tax rate = 39% Personal tax rate on dividend = 15% Personal…

Answered: A C corporation earns $9.10 per share…

Financial Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

Publisher:Brigham

Chapter2: Financial Statements, Cash Flow,and Taxes

Section: Chapter Questions

Problem 10MC

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Similar questions

Assume that a corporation has $100,000 of taxable income from operations plus $5,000 of interest income and $10,000 of dividend income. What is the company’s federal tax liability?
An S corporation earns $4.7 per share before taxes. The corporate tax rate is 35%, the personal tax rate on dividends is 20%, and the personal tax rate on non−dividend income is 39%. What is the total amount of taxes paid if the company pays a $2 dividend? A. $2.2 B. $1.83 C. $1.47 D. $2.57
A C corporation earns $7.80 per share before taxes. 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 total amount of taxes paid if the company pays a $4 dividend? A. $2.91 B. $4.37 C. $5.10 D. $3.64
An S corporation earns $6.30 per share before taxes. The corporate tax rate is 35%, the personal tax rate on dividends is 20%, and the personal tax rate on non-dividend income is 39%. What is the total amount of taxes paid if the company pays a $3.00 dividend? A. $1.97 B. $2.95 C. $3.44 D. $2.46 OC
A C corporation earns $4 per share before taxes. The corporate tax rate is 21%, the personal tax rate on dividends is 15%. What is the total amount $ of taxes paid (company + individual) if the company pays a $2 dividend?
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20) A C corporation earns $8.30 per share before taxes and the company pays a dividend of $2.00 per share. The corporate tax rate is 39%, the personal tax rate on dividends is 18%, 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) $1.49 B) $1.28 C) $1.22 D) $1,64
An S corporation earns $ 7.20 per share before taxes. 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 total amount of taxes paid if the company pays a $ 6.00 dividend?
Assume that the personal tax rate on interest income is 15% and the personal tax rate on dividends is 10%. Assume also that the Company generates EBIT equal to 5 euros and distributes 40% of these earnings (payout ratio = 40%) to its shareholders. What is the net income that the shareholder receives after taxes? Coporate tax =22% a) 3.51 b) 1.40 c) 1.78 d) None of the above.
25. Calculate the amount of corporate income tax due and the net income after taxes (in $) for the corporation. (Assume the corporate tax rate is 21%.) Таxable Tax Net Income Name Income Liability after Taxes Corporation 3 $13,450,000 $ $
what is total tax paid by firm and owner, when corporation has$790 in profits and a 34.2% tax rate (individual tax rate is 12.13%
You are a shareholder in a corporation. The corporation earns $5 per share before taxes. After it has paid taxes, it will distribute the rest of its earnings to you as dividend. The corporate tax rate is 30% and your personal tax rate on dividend income is 25%. What is the amount of your after-tax earnings on dividend? a. 0.875 b. 1.25 c. 1.875 d. 2.625 e. 3.50

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