Stephanie Is the Sole Shareholder and President of Hawk Corporation

question 166

Essay

Stephanie is the sole shareholder and president of Hawk Corporation. She feels that she can justify at least a
$220,000 bonus this year because of her performance. However, rather than a bonus in the form of a salary, she plans to have Hawk pay her a $220,000 dividend. Because Stephanie's marginal tax rate is 32%, she prefers to receive a dividend taxed at 15%. Her accountant, however, suggests a $275,000 bonus in lieu of the $220,000 dividend since Hawk Corporation is in the 21% tax bracket. Should Stephanie take the $220,000 dividend or the
$275,000 bonus? Support your answer by computing the after-tax cost of the two alternatives to Hawk and to
Stephanie.

Learn about the social and psychological dynamics in helping behavior and altruism.

Identify the effects of social influence on behavior and decision making.

Distinguish between various social psychological theories related to aggression, attraction, and persuasion.

Understand the principles behind conflict resolution strategies such as GRIT.