A C corporation earns $4.50 per share before taxes. The corporate tax rate is 35%, the personal

Fantastic news! We've Found the answer you've been seeking!

Question:

A C corporation earns $4.50 per share before taxes. The corporate tax rate is 35%, the personal tax rate on dividends is 20%, and the personal tax rate on non-dividend income is 39%. What is the total amount of taxes paid if the company pays a $2.00 dividend?

A) $2.48

B) $1.98

C) $0.90

D) $1.58