Problem on corporation taxing


Question:

You are a shareholder in a S corporation. The corporation earns $2 per share before taxes. Once it has paid taxes it will distribute the rest of its earnings to you as a dividend. The S corporation tax rate is 40% and the personal tax rate on (both dividend and non-dividend) income is 30%. How much is left for you after all taxes are paid?

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Finance Basics: Problem on corporation taxing
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