You are a shareholder in a corporation. The corporation earns $5 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 38%, the personal tax rate on dividend income is 25%, and the personal tax rate on other income is 42%. How much is left for you after all taxes are paid? The amount that remains is $ per share. (Round to the nearest cent.)

You are a shareholder in a corporation. The corporation earns $5 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 38%, the personal tax rate on dividend income is 25%, and the personal tax rate on other income is 42%. How much is left for you after all taxes are paid? The amount that remains is $ per share. (Round to the nearest cent.)

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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You are a shareholder in an S corporation. The corporation earns $1.67 per share before taxes. As a pass through entity, you will receive $1.67 for each share that you own. Your marginal tax rate is 20%. How much per share is left for you after all taxes are paid? Amount that remains is $ per share. (Round to the nearest cent.)
Charleston Corporation (CC) now operates as a "regular" corporation, but it is considering a switch to S Corporation status. CC is owned by 100 stockholders who each hold 1% of the stock, and each faces a personal tax rate of 24%. The firm carns $3,000,000 per year before taxes, and since it has no need for retained earnings, it pays out all of its earnings as dividends. Assume that the corporate tax rate is 34% and the personal tax rate is 24%. How much more (or less) spendable income would each stockholder have if the firm elected S Corporation status? a. $7,752 b. $2,472 $9.732 d $5,472 & $3,000
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A corporation earns $8.30 per share before taxes. The corporate tax rate is 39%, the personal tax rate on dividends is 15%, and the personal tax rate on non-dividend income is 36%. What is the total amount of taxes paid per share if the company has a payout ratio of 45%? Answer to two decimals (dollars and cents) A corporation earns $8.30 per share before taxes. The corporate tax rate is 39%, the personal tax rate on dividends is 15%, and the personal tax rate on non-dividend income is 36%. What is the total amount of taxes paid per share if the company has a payout ratio of 45%? Answer to two decimals (dollars and cents) ASAP
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
Suppose you are in the 33% income tax bracket. You own shares in Carefree Casinos, whose profits are taxed at a 25% rate. “Double taxation” means: A. Carefree pays 25% tax on before-tax profits, then another 25% tax is applied to its after-tax profits. B. Carefree pays 25% tax on its before-tax profits, then another 33% tax is applied to its after-tax profits. C. Carefree pays 25% tax on before-tax profit and 33% on its retained earnings, and you pay 33% tax on dividends which are distributed to you. D. Carefree pays 25% tax on before-tax profit but 0 tax on its retained earnings, and you pay 33% tax on dividends which are distributed to you. E. Carefree pays 25% tax on before-tax profit and 25% on its retained earnings, and you pay 33% tax on dividends which are distributed to you.
1. Which of the following nominal rates does not apply to a C corporation? a. 10% b. 15% c. 25% d. 35% 2. Which of the following is never included in gross income? a. Loss on stock sale b. Social security benefits c. Gifts d.Unemployment benefits 3. What is George’s gross income if he has the following: Salary = $78,000; Dividends = $4,000; interest on city of San Francisco bonds = $2,000; a gain of $14,000 on a stock sale and a $4,000 loss on a small sole proprietorship that he owns. a. $78,000 b. $84,000 c. $92,000 d. $96,000 4. Azure Corporation (a C corporation) sold $100,000 of merchandise for which it paid $40,000. It also paid $35,000 of other expenses. All transactions were in cash. What is Azure’s Corporation’s after-tax net cash inflow? a. $21,250 b. $25,000 c. $60,000 d. $100,000 5. Koral Corporation can invest in a project that costs $400,000. The projectisexpectedtohaveanafter-taxreturnof$250,000ineachof years 1 and 2. Koral normally uses a 10 percent discount rate to…
Answer in 30 minutes A corporation earns $8.30 per share before taxes. The corporate tax rate is 39%, the personal tax rate on dividends is 15%, and the personal tax rate on non-dividend income is 36%. What is the total amount of taxes paid per share if the company has a payout ratio of 45%? Answer to two decimals (dollars and cents) A corporation earns $8.30 per share before taxes. The corporate tax rate is 39%, the personal tax rate on dividends is 15%, and the personal tax rate on non-dividend income is 36%. What is the total amount of taxes paid per share if the company has a payout ratio of 45%? Answer to two decimals (dollars and cents)
Suppose a firm in the 40% federal-plus-state tax bracket needs to pay $1 in dividends to its shareholders. What is the pretax income it should have to pay this dividend? $1.00 $1.67
You are a shareholder in an S corporation. The corporation earns $2.36 per share before taxes. As a pass through entity, you will receive $2.36 for each share that you own. Your marginal tax rate is 20%. How much per share is left for you after all taxes are paid? The amount that remains is how much per share. (Round to the nearest cent.)
Assume that the corporate tax rate is 34% and the personal tax rate is 30%. The founders of a newly formed earnings, so all of its after-tax income will be paid out to its investors, who will have to pay personal taxes or can spend under the corporate and partnership forms of organization? O a. 21.90% O b. 28.56% O c. 23.56% O d. 23.80% O e. 22.61%
Vijay shiyal

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