Find personal tax income per share

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Assume the corporate tax rate is 34 percent, the personal tax rate on interest income is 15 percent, and the personal tax rate on dividends is 10 percent. The firm earns $5 per share after paying interest but before paying company tax. It pays out 40 percent of its earnings. How much will a shareholder receive after paying personal tax income per share?

Reference no: EM132634902

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