Question 4: You are a shareholder in a C corporation. The corporation earns $4 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 20% and the personal tax rate on (both dividend and non-dividend) income is 15%. How much is left for you after all taxes are paid? Calculate the Effective Tax Rate. SAMSUNG

Question 4: You are a shareholder in a C corporation. The corporation earns $4 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 20% and the personal tax rate on (both dividend and non-dividend) income is 15%. How much is left for you after all taxes are paid? Calculate the Effective Tax Rate. SAMSUNG

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter6: Accounting For Financial Management

Section: Chapter Questions

Problem 7P

See similar textbooks

Similar questions

You are a shareholder in a C corporation. The corporation earns $2.13 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 25%, and your personal tax rate on (both dividend and non-dividend) income is 20%. How much is left for you after all taxes are paid?
You are a shareholder in a C corporation. The corporation earns $1.77 per share before taxes. Once it has paid taxes, it will distribute the rest of its earnings to you as a dividend. The corporate tax rate is 21% and your personal tax rate on (both dividend and non-dividend) income is 20%. How much is left for you after all taxes are paid? The amount that remains is how much per share? (Round to the nearest cent.)
You are a shareholder in a C corporation. The corporation earns$ 1.86 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 35 %, and your personal tax rate on (both dividend and non-dividend) income is 30%. How much is left for you after all taxes are paid? (The amount left per share)(round to nearest cent)
You are a shareholder in a C corporation. The corporation earns $2.01 per share before taxes. Once it has paid taxes it will distribute the rest of its earnings to you as a dividend. Assume the corporate tax rate is 22% and the personal tax rate on (both dividend and non-dividend) income is 20%. How much is left for you after all taxes are paid?
You are a shareholder in a corporation. The corporation earns $5 per share before taxes. After it has paid taxes, it will distribute the rest of its earnings to you as dividend. The corporate tax rate is 30% and your personal tax rate on dividend income is 25%. What is the amount of your after-tax earnings on dividend? a. 0.875 b. 1.25 c. 1.875 d. 2.625 e. 3.50
You are a shareholder in a corporation. The corporation earns $8.00 per share before taxes. After it has paid taxes, it will distribute the rest of it's earnings to you as a dividend (We make this simplifying assumption, but should note that most corporations retain some of their earnings for reinvestment). The dividend is income to you, so you will then pay taxes on these earnings. The corporate tax rate is 25% and your tax rate on dividend income is 20%. How much of the earnings remains after all taxes are paid?
You are a shareholder in a corporation. The corporation earns $10 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 36%, the personal tax rate on dividend income is 20%, and the personal tax rate on other income is 41%. How much is left for you after all taxes are paid? The amount that remains is $___per share. (Round to the nearest cent.)
You are a shareholder in a "S" corporation. This corporation earns $4 per share before taxes. After it has paid taxes, it will distribute the remainder of its earnings to you as a dividend. The dividend is income to you, so you will then pay taxes on these earnings. The corporate tax rate is 21% and your tax rate on dividend income is 15%. The effective tax rate on your share of the corporations' earnings is closest to: WHEELSTE • 15% O 21% О 28% O 33% • 36%
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?
Don't provide handwritten answer. You are a shareholder in a C corporation. The corporation earns $1.81 per share before taxes. Once it has paid taxes it will distribute the rest of its earnings to you as a dividend. Assume the corporate tax rate is 38% and the personal tax rate on (both dividend and non-dividend) income is 30%. How much is left for you after all taxes are paid? The amount that remains is $ per share. (Round to the nearest cent.)
Sully Windows earns $5.50 per share before taxes. The corporate tax rate is 40%, the personal tax rate on dividends is 15%, and the personal tax rate on non-dividend income is 40%. What is the total amount of taxes paid per share if the company pays a $2.00 dividend but all of the shares are held in a tax-free savings account? Be sure to segregate corporate taxes and personal taxes paid.
Question 1: Suppose you own 100 shares of General Motors stock, and the company earned $6 per share during the last reporting period. Suppose also that GM could either pay all of its earnings out as dividends (in which case you would receive $600) or retain the earnings in the business, buy more assets, and cause the price of the stock to increase by $6 per share (in which case the value of your stock would rise by $600). a. How would the tax laws influence what you, as a typical stockholder, would want the company to do? b. Would your choice be influenced by how much other income you had? Why might the desires of a 35-year-old doctor differ with respect to corporate dividend policy from the desires of a retiree living on a small income? c. How might the corporation’s decision with regard to the dividends it pays influence the price of its stock?