An S corporation earns $5.20 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 $3.00 dividend? O $2.43 ○ $1.62 ○ $2.84 ○ $2.03

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 $5.20 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 $3.00 dividend?
O $2.43
○ $1.62
○ $2.84
○ $2.03
Transcribed Image Text:An S corporation earns $5.20 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 $3.00 dividend? O $2.43 ○ $1.62 ○ $2.84 ○ $2.03
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