Purchase Solution

Calculate the Amount of Dividends from a Corporation After Tax

Not what you're looking for?

Ask Custom Question

You are a shareholder in a 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 corporation tax rate is 40% and the personal tax rate on both dividend and non-dividend income is 30%.

A. How much is left for you after all taxes are paid?

B. Repeat above problem assumming the corporation is an S corporation.

Purchase this Solution

Solution Summary

The solution calculates the amount of dividends from a corporation after tax.

Solution Preview

A. Earnings before tax = $2.00 per share
Corporation Tax @40% = $0.80 per share
Earnings after corporation tax = $1.20 per share

Income received at the hand of the investor = $1.20 per ...

Purchase this Solution

Free BrainMass Quizzes
Employee Orientation

Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.

Introduction to Finance

This quiz test introductory finance topics.

Lean your Process

This quiz will help you understand the basic concepts of Lean.

Cost Concepts: Analyzing Costs in Managerial Accounting

This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.

Situational Leadership

This quiz will help you better understand Situational Leadership and its theories.