In: Finance
A C corporation earns $12.82 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 $6.66 dividend?
corporate tax = 12.82 * 0.39
= 5
personal tax = 6.66 * 0.15
= 1
total amount of taxes
= 12.82 * 0.39 + 6.66 * 0.15
= 6