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)

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Asked Mar 21, 2019
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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)

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Expert Answer

Step 1

Dividends: The term dividends allude to that portion of proceeds of an organization which is circulated by the organization among its investors. It is the remuneration of the investors for investments made by them in the shares of the organization. 

Step 2

Calculation of amount after all taxes is paid:

The amount after all taxes is paid is calculated using a excel spreadsheet. The excel spreadsheet is shown below:

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Step 3

The excel spreadsheet workings are shown below:

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