An S corporation earns $4.7 per share before taxes. The corporate tax rate is​ 35%, the personal tax rate on dividends is​ 20%, and the personal tax rate on non−dividend income is​ 39%. What is the total amount of taxes paid if the company pays a $2 ​dividend? A. $2.2 B. $1.83 C. $1.47 D. $2.57

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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An S corporation earns $4.7 per share before taxes. The corporate tax rate is​ 35%, the personal tax rate on dividends is​ 20%, and the personal tax rate on non−dividend income is​ 39%. What is the total amount of taxes paid if the company pays a $2 ​dividend?

A. $2.2

B. $1.83

C. $1.47

D. $2.57

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