Tofino Toffee is a corporation that earned $5 per share before it paid any taxes. The firm retained $2.50 of after-tax earnings for reinvestment, and distributed what remained in dividend payments. You hold 6,000 shares of Tofino Toffee in a tax-free savings account, and 4,000 shares outside of a tax-free savings account. If the corporate tax rate was 25% and dividend earnings were taxed at 15%, what was the value of your dividend earnings received after all taxes are paid?

Answer rating: 100% (QA)

Earnings per share before taxes 5 per share Corporate tax rate 25 Corporate tax applied on ... View the full answer