Assume that provident health system a for-profit hospital


Assume that Provident Health System ,a for-profit hospital ,has 1 million in taxable income for 2011,and its tax rate is 30 percent.

a. Given this information, what is the firm's ne income? (Hint:net income is what remains after taxes have been paid.

b. Suppose the hospital pays out $ 300,000 in dividends.A stockholder receives $ 10,000.If the stockholder's tax rate on dividends is 15 percent ,what is the after -tax dividend?

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Basic Statistics: Assume that provident health system a for-profit hospital
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