You are a shareholder in a C corporation. The corporation earns $4 per sharebefore taxes. Once it has paid taxes, it will distribute the rest of its earnings to youas a dividend. The corporate tax rate is 21%, and the personal tax rate ondividend income is 20%. How much is left for you after all taxes are paid? Theamount that remains is $_ per share. (Round to 2 decimals.)

The amount left for you after all taxes are paid is given by: Amount after taxes = Earnings before…

Answered: You are a shareholder in a C…

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

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Michael’s, Inc. just paid $1.80 to their shareholders as the annual dividend. Simultaneously, the company announced that future dividends would be increasing by 5.0 percent forever. If you require an 4 percent rate of return, how much are you willing to pay to purchase one share of Michael’s stock?
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d. Suppose the only owners of stock are corporations. Recall that corporations get at least a 50 percent exemption from taxation on the dividend income they receive, but they do not get such an exemption on capital gains. If the corporation's income and capital gains tax rates are both 33 percent, what does this model predict the ex- dividend share price will be? (Do not round intermediate calculations and round. your answer to 4 decimal places, e.g., 32.1616.)
Becky Martinez owns stock in GBX Corporation. The GBX stock has a current market value of $70 a share. If Becky receives $1.40 a year in dividends, what is the dividend yield?
You own $107,000 worth of Smart Money stock. One year from now, you will receive a dividend of $2.95 per share. You will receive a dividend of $3.10 two years from now. You will sell the stock for $72 per share three years from now. Dividends are taxed at the rate of 38 percent. Assume there is no capital gains tax. The required aftertax rate of return is 16 percent. How many shares of stock do you own? Give typing answer with explanation and conclusion
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↑ You are a shareholder in a C corporation. The corporation earns $2.05 per share before taxes. Once it has paid taxes it will distribute the rest of its earnings to you as a dividend Assume the corporate tax rate is 25% and the personal tax rate on all income is 20% How much is left for you after all taxes are paid? The amount that remains is $ per share. (Round to the nearest cent.)
(MORNING) AC corporation earns $4.30 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 pay $2.00 dividend? This questuon: 10 polniS) possibie O A. $2.29 O B. $2.67 OC. $1.91 O D. $1.52 O Time Remaining: 00:50:30 Next O tv MacBook Air DII DD 80 F12 F9 F10 F11 esc F5 F6 F7 F8 F1 F2 F3 F4 @ $ & delete %3D 1 2 4 7 { Y U P Q W E tab J K = - .. .. - *
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4. You own 100 shares in each of three companies. Each company pays a dividend. Gillette pays $1.15 per share in dividends. General Electric pays $.79 per share in dividends. Hershey Foods pays $ .84 per share in dividends. How much do you collect in dividends from all three companies? Explain how you got your answer.
You are a shareholder in a C corporation. The corporation eams $1.74 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 40%, 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 that remains is Sper share (Round to the nearest cont) Gre
Please see problem below. Where did the -25,000 and +6,000 come from? thank you! Your company has sales of $425,000; cost of goods sold = $200,000. The company paid interest of $25,000 on a loan and received $20,000 in dividends from GE. They paid $55,750 in common stock dividends and $10,000 in preferred stock dividends. What was their Federal tax bill (use 21% flat tax)?First find the taxable income:$425,000-200,000225,000- 25,000200,000+ 6,000$206,000 x .21 = $43,260 = Fed Tax Bill

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