A C corporation earns $12.82 per share before taxes. The corporate tax rate is 39%, the...

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?

Solutions

Expert Solution

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

jeff jeffy answered 2 years ago

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