What is the after-tax amount of the dividend

Assignment Help Econometrics
Reference no: EM131183830

A firm that owns the stock of another corporation does not have to pay taxes on the entire amount of dividends received. In general, only 30 percent of the dividends received by one corporation from another are taxable. The reason for this tax law feature is to mitigate the effect of triple taxation, which occurs when earnings are first taxed at one firm, then its dividends paid to a second firm are taxed again, and finally the dividends paid to stockholders by the second firm are taxed yet again.
Assume that a firm with a 35 percent tax rate receives $100,000 in dividends from another corporation. What taxes must be paid on this dividend, and what is the after-tax amount of the dividend?

Reference no: EM131183830

Questions Cloud

Determining the spontaneous reaction : Where does activation energy comes from for a spontaneous reaction?
What components of the organizational culture should change : What impact do the leadership styles have on the present organizational cultures at AGC? Describe problems that exist when a parent organization fails to acknowledge cultural differences at its other global locations. What challenges does AGC present..
Identify the important attributes for your chosen product : Identify the important attributes for your chosen product and select two key variables for your perceptual map. Prepare a perceptual map for your chosen product/brand and using a minimum of seven competitors, rank each product/brand on the two vari..
What components of the organizational culture should change : What impact do the leadership styles have on the present organizational cultures at AGC? Describe problems that exist when a parent organization fails to acknowledge cultural differences at its other global locations. What challenges does AGC present..
What is the after-tax amount of the dividend : What taxes must be paid on this dividend, and what is the after-tax amount of the dividend?
Dehydration work in a ketohexose : In Seliwanoff's test, will the aldohexoses turn pink if the heating is over 1 minute? How does the dehydration work in a ketohexose?
Describe different types of managed care plans : What are the primary characteristics of managed care plans?
How does ethics impact an organization overall culture : How does ethics impact business relationships within an organization? How can leaders and their leadership styles impact the ethical practices within an organization? How does ethics impact an organization's overall culture?
Why are tax laws important to healthcare finance : What three major advantages do tax laws give to not-for-profit corporations?

Reviews

Write a Review

Econometrics Questions & Answers

  Which pipe size is more economical at an interest rate of 1%

A small pipeline will cost less to purchase (including valves and other appurtenances) but will have a high head loss and, therefore, a higher pumping cost.

  Which country has an absolute advantage in production

Which country has a comparative advantage in production of caps In wheat c. If the US and Russia were the only two countries engaging in trade, what adjustments would you predict, assuming exchange rates are freely determined by the laws of supply..

  How many inspectors should the firm hire

How many inspectors should be hired if additional indirect cost (lost goodwill and so on) were to average 30 percent of direct replacement or repair costs?

  What is ajaxs profit per camera in the digital camera market

Knockoff Inc. produces what it regards as a low-quality digital camera. However, because the market is so new, reputations for quality have not yet developed, and consumers cannot tell the quality difference between an Ajax digital and a Knockoff ..

  Which product does foreign export

What is the opportunity cost of bicycles in terms of snowboards at Home? What is the opportunity cost of bicycles in terms of snowboards in Foreign?

  Compute the cost.edward the entrepreneur

The interest rate is 10 percent.a.Given his current output level, his marginal cost is $nothing (enter your response to the nearest dollar

  How many packages should be purchase per week

the vegetable buyer for a group of a grocery stores hasdecided to sell pakages of sprouted grain in the vegetable sectionof the stores. the product is pereshable and any remaining unsold after one week in the store is dicarded.

  Find probability that she will have to obtain her cup of tea

Swapna David is a customer assistant consultant for Acme Information Systems, who provides assistance for computer users. The mean number of calls per hour is 40 from across the United States and calls are independent.

  What is the marginal product of fishing for hour spent

In order to determine whether time is being spent optimally, a commercial fisherman has recorded the following information over the past year: "hours spent fishing" and "quantity of fish caught." What is the marginal product of fishing for hour sp..

  What is dealers annual rate of return on loan transactions

Assume that you are going to buy a car work $25,000. You will be able to make a down payment of $3,000. The remaining 22,000 will be financed by the dealer. The dealer computes your monthly payment to be $547.47 for 28 months of financing.

  1 suppose there is an increase in supply rightward shift in

1. suppose there is an increase in supply rightward shift in supply. consider two graphs. in graph x demand is

  Derive the production plan that minimizes total cost

Derive the production plan that minimizes total cost. Solve by both backward and forward induction. Consider x1 and x2 as continuous variables, since any fraction of a ton may be produced in either month.

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