How much dividend per share is left for fish crown

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XYD Co. is an S-corporation and almost all its shares are owned by members of the Avaro family. The corporation has a good year and ends up earning $8.00 per share before taxes. Once taxes have been paid, the remaining profits will be distributed to the owners of XYD as a dividend. The corporate tax rate is 25% and the personal income tax rate is 30%.

Problem a. How much dividend per share is left for Fish Crown's shareholders after all taxes have been paid?

Problem b. There are 92 members of the Avaro family that own XYD's stock. But there are also a few outsiders. Can you make a prediction about their potential number? For example, is there a lower or upper bound?

Problem c. How would your answers in both questions above change if XYD were a C-corporation?

Reference no: EM133009831

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