(MORNING)AC corporation earns $4.30 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 pay$2.00 dividend?This questuon: 10 polniS) possibieO A. $2.29O B. $2.67OC. $1.91O D. $1.52O Time Remaining: 00:50:30NextO tvMacBook AirDIIDD80F12F9F10F11escF5F6F7F8F1F2F3F4@$&delete%3D1247{YUPQWEtabJK= -.. ..-*

There are double taxation on the dividend one is paid by the company and another is paid by the…

Answered: dividend? A. $2.29 B. $2.67 OC. $1.91…

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Finance

dividend? A. $2.29 B. $2.67 OC. $1.91 OD. $1.52

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter2: The Domestic And International Financial Marketplace

Section2.A: Taxes

Problem 2P

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Question

(MORNING)
AC corporation earns $4.30 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 pay
$2.00 dividend?
This questuon: 10 polniS) possibie
O A. $2.29
O B. $2.67
OC. $1.91
O D. $1.52
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