What are the healthcare business basics

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Healthcare business basics

Assume that Orion health system, a for -profit hospital, has $8 million in taxable income for 2008, and it's tax rate is 45 percent.

Question 1: Given this information what is the firms net income? ( net income is what remains after taxes have been paid out)

Question 2: Suppose the hospital pays out $500,000 in dividends: a stockholder, Carl Johnson received $40,000. If Carl 's tax rate on dividends is 20 percent, what is his after ax dividends?

Reference no: EM132492587

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