Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Transcribed Image Text:You are a shareholder in a C corporation. The corporation earns $2.00 per
share before taxes. Once it has paid taxes it will distribute the rest of its
earnings to you as a dividend. Assume the corporate tax rate is 25% and the
personal tax rate on all income is 20%. How much is left for you after all taxes
are paid?
The amount that remains is $ per share. (Round to the nearest cent.)
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