sis Group is a C-Corporation with $200,000,000 in pre-tax profits. It pays 30% of net income as dividends. The personal wage income tax rate is 40%, and the personal dividend income tax rate is 15%. It has 10,000,000 shares outstanding. What will happen to the after-tax income per share after the corporate tax rate falls from 35% to 20%
sis Group is a C-Corporation with $200,000,000 in pre-tax profits. It pays 30% of net income as dividends. The personal wage income tax rate is 40%, and the personal dividend income tax rate is 15%. It has 10,000,000 shares outstanding. What will happen to the after-tax income per share after the corporate tax rate falls from 35% to 20%
Chapter2: The Domestic And International Financial Marketplace
Section2.A: Taxes
Problem 1P
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Genesis Group is a C-Corporation with $200,000,000 in pre-tax profits. It pays 30% of net income as dividends. The personal wage income tax rate is 40%, and the personal dividend income tax rate is 15%. It has 10,000,000 shares outstanding. What will happen to the after-tax income per share after the corporate tax rate falls from 35% to 20%
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