Kash Kow Inc pays out all its after tax earnings to
Kash Kow Inc. pays out all its after-tax earnings to shareholders in the form of dividends. Suppose that in 2012 the company earned $1 per share before tax. Corporate income tax was paid at a rate of 25 percent. For a high-income earner living in Ontario, the personal tax on dividend income was 31.34 percent. How much of the original $1 per share would such a shareholder have left after all the taxes were paid?

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