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A C corporation earns $10 per share before taxes. After it has paid taxes, it will...

A C corporation earns $10 per share before taxes. After it has paid taxes, it will distribute the rest of its earnings as dividends. The dividend is income to you, so you will pay taxes on these earnings. The corporate tax rate is 40% and your personal dividend tax rate is 15%. How much of the earnings remain after all taxes are paid?

SOLVE MULTIPLE CHOICE, PLEASE SHOW STEP BY STEP SOLVING

a.) $0.90 b) $ 4.00 c) $6.00 d) $5.10

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Expert Solution

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

IT IS WRITTEN AFTER PAYING ALL TAXES SO BOTH CORPORATE AND PERSONAL TAXES ARE DEDUCTED

jeff jeffy answered 3 weeks ago
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