You are a shareholder in C corporation. The Corporation earns $28 per share before taxes. Once...

You are a shareholder in C corporation. The Corporation earns $28 per share before taxes. Once it has paid taxes, it will distribute the rest of its earnings to you as a dividend. The corporate tax rate is 33%, and the personal tax rate on the dividend income is 24%. How much is left for you after all taxes are paid?

The amount that remains is $___ per share. (Round to 2 decimals.)

Expert Solution

Solution :-

CorpTax earnings: $28 * 33% = $9.24

After Tax Earnings: $28 - $9.24 = $18.76

Personal Tax (dividends): $18.76 * 24% = $4.5024

After all Taxes are paid: $18.76 - $4.5024 = $14.26

The amount that remains is $14.26 per share

jeff jeffy answered 2 years ago

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