What was the value of the dividend earnings received

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MSD Corp. is a C corporation that earned $5.4 per share before it paid any taxes. MSD Corp. retained $2 of after-tax earnings for reinvestment and distributed what remained in dividend payments. If the corporate tax rate was 21% and dividend earnings were taxed at 12.5%, what was the value of the dividend earnings received after-tax by a holder of 100,000 shares of MSD Corp.?

Please show all work with formula use.

Reference no: EM132381135

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