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Xavier Corporation Has Declared a $4 Per Share in Dividends

question 59

Essay

Xavier Corporation has declared a $4 per share in dividends.The federal tax rate is 26% and the provincial tax rate is 13.39%.Federal and Provincial tax credits are 13.33% and 5.1% respectively on the grossed up amount of the dividend.The gross up amount is 25%.Determine the after tax dividend income.


Definitions:

Applied Training

Training focused on practical application of skills and knowledge in specific contexts, often tailored to meet job-specific requirements.

Paid

The state of having received money in exchange for goods or services, or as recompense for a debt.

Employee

An individual hired by another person or business to perform work or services in exchange for compensation.

Applied Training Site

An external location where students or employees receive practical experience and training relevant to their field of study or work.

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