# An S corporation earns \$ 7.20 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 \$ 6.00 dividend?

Question
Asked Feb 17, 2020
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An S corporation earns \$ 7.20 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 \$ 6.00 dividend?

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## Expert Answer

Step 1

The earnings per share is \$7.20.

The personal tax rate on non-dividend income is 36%.

Step 2

The amount of total tax paid is calculated below:

...

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