Consider a c corporation the corporation earns 35 per share


Consider a C corporation. The corporation earns $3.5 per share before taxes. After the corporation has paid its corresponding taxes, it will distribute 100% of its earnings to its shareholders as a dividend. The corporate tax rate is 35%, the tax rate on dividend income is 15%, and the personal income tax rate is set at 39.6%.

How much is the total effective tax rate on the corporation earnings?

Request for Solution File

Ask an Expert for Answer!!
Financial Management: Consider a c corporation the corporation earns 35 per share
Reference No:- TGS01371584

Expected delivery within 24 Hours