How much will you receive after all taxes are paid

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Question - You are a shareholder in a "S" corporation that has income before taxes of $10 million.

After it will distribute the earnings to its shareholders as a dividend.

There are 1 million shares outstanding.

Assume the corporate tax rate is 34%, and the personal tax rate on dividend income is 17%.

As a shareholder with 900 shares, how much will you receive after all taxes are paid?

Reference no: EM133163021

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