Given the following information, what is the after-tax dividend per share that DBC Corp.'s shareholders will receive next year if DBC Corp. pays out the interest earned on its cash? Cash $1,000.00 Interest rate 10% Corporate tax (tc) 21% Personal dividend tax (td) 35% Shares outstanding 50.00 Ex-dividend price calculation: Interest earned by DBC Corporate tax Dividend paid After-tax dividend After tax dividend per share
Given the following information, what is the after-tax dividend per share that DBC Corp.'s shareholders will receive next year if DBC Corp. pays out the interest earned on its cash? Cash $1,000.00 Interest rate 10% Corporate tax (tc) 21% Personal dividend tax (td) 35% Shares outstanding 50.00 Ex-dividend price calculation: Interest earned by DBC Corporate tax Dividend paid After-tax dividend After tax dividend per share
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
Section: Chapter Questions
Problem 1PS
Related questions
Question
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Given the following information, what is the after-tax dividend per share that DBC Corp.'s shareholders will receive next year if DBC Corp. pays out the interest earned on its cash? |
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Cash |
$1,000.00 |
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Interest rate |
10% |
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Corporate tax (tc) |
21% |
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Personal dividend tax (td) |
35% |
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Shares outstanding |
50.00 |
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Ex-dividend price calculation: |
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Interest earned by DBC |
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Corporate tax |
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Dividend paid |
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After-tax dividend |
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After tax dividend per share |
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