What is the after-tax amount an individual would receive

Assignment Help Financial Accounting
Reference no: EM132927911

Problem 1: A C corporation earns $8.30 per share before taxes and the company pays the whole profit out as a dividend share. The corporate tax rate is 21%, the personal tax rate on dividends is 15%, and the personal tax rate on non-dividend income is 20%. What is the after-tax amount an individual would receive from the dividend?

A. $7.32

B. $5.57

C. $3.80

D. $5.15

Reference no: EM132927911

Questions Cloud

Reimbursement in a healthcare organization : What are the various tasks the different healthcare departments do relating to the reimbursement process?
Estimate the amount of purchase inventory destroyed : Net purchases January 1 through August 5 421,000. Estimate the amount of purchase inventory destroyed in the fire on August 5 using the gross profit method
What is the company total gross margin : The company sold 41,000 units in the East region and 13,000 units in the West region. What is the company total gross margin
Prepare the journal entry for the first semi-annual interest : Prepare the journal entry for the first semi-annual interest payment AND amortization of the bond discount of premium using the straight-line method
What is the after-tax amount an individual would receive : The personal tax rate on non-dividend income is 20%. What is the after-tax amount an individual would receive from the dividend?
What is the company net operating income : The company sold 41,000 units in the East region and 13,000 units in the West region. What is the company net operating income
How much must the firm accounts payable level change : How much must the firm accounts payable level change in order to meet its goal of a 35-day reduction in the cash conversion cycle?
Prepare all necessary journal entries for Ayayai : On July 3, Ayayai returned damaged goods and received a credit of $5,000. On July 10, Ayayai paid for the goods. Prepare necessary journal entries for Ayayai
What should be the price of the third home : A third home, again comparable to the one that sold. Assuming the market rate of interest is still 7.5%, what should be the price of this third home? Why?

Reviews

Write a Review

Financial Accounting Questions & Answers

  Explain why you would want the financial statements

Focus is on the preparation of financial reports for internal users, such as managers. This case study applies the concepts of managerial accounting

  What portion of the advance should be eliminated

What portion of this advance should be eliminated in the preparation of the 31 December,2009 consolidated financial statement

  Compare income statement and balance sheet effects

Compare and contrast the income statement and balance sheet effects of these two transactions. How should Cypres Appliance Store structure this transaction to ensure that it qualifies as a sale instead of a collateralized loan?

  What is the size of a difference check on a year

What is the size of a difference check on a 1-Year short forward GBP contract given that the size of the contract is GBP 500,000; the amount of the contract

  Explain how financial target setting can motivate employees

Explain how financial target setting can motivate employees within an organisation. Provide two examples to justify your answer.

  What would sparrow predict as its variable cost per unit

Sparrow, Inc. used the high-low method to estimate that its fixed costs are $300,015. At its low level of activity, 101,700 units, average cost was $3.50 per unit. What would Sparrow predict as its variable cost per unit?

  How much will total taxes of arrow corporation be reduced

Assume the Arrow Corporation, How much will the total taxes of Arrow Corporation be reduced as a result of the tax loss carry-forward?

  Variable costing income statement reconciliationwhitman

variable costing income statement reconciliationwhitman company has just completed its first year of operations. the

  Examine the balance sheet and operating statement

Using the financial statements from the Major Medical Center Case Study at the end of chapter 14, analyze the following: this is from Finkler book. Review the auditor’s opinion letter and analyze any concerns.

  What amount of shipping department costs should be allocate

During the period, the Far East sales office generated 677, What amount of shipping department costs should be allocated to these sales?

  What are the expected dividend yield and capital gains yield

What are the expected dividend yield and capital gains yield during the first year? What are the expected dividend yield and capital gains yield

  How will approach the task

Ski resorts' cost of making snow are in the millions, What are some of the things you need to consider? How will you approach this task?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd