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17 February, 16:31

A c corporation earns $9.50 per share before taxes. the corporate tax rate is 39%, the personal tax rate on dividends is 10%, and the personal tax rate on non-dividend income is 36%. what is the total amount of taxes paid if the company pays a $4 dividend? g

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  1. 17 February, 20:20
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    The total amount of taxes that the company will pay will be calculated as under -

    Total taxes paid = (Taxes on income) + (Taxes on dividends)

    Total taxes paid = ($ 9.50 X 39%) + ($ 4 X 10%)

    Total taxes paid = $ 3.705 + $ 0.4 = $ 4.105 or $ 4.11
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