A C Corporation Earns $7

question 44

Multiple Choice

A C corporation earns $7.40 per share before taxes.The corporate tax rate is 39%,the personal tax rate on dividends is 15%,and the personal tax rate on non-dividend income is 36%.What is the total amount of taxes paid if the company pays a $5.00 dividend?

• A)$0.75
• B)$2.89
• C)$3.64
• D)$4.00

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Definitions:

Gonads

Primary sex organ; produce gametes and sex hormones.

Follicle-Stimulating Hormone

A hormone involved in the reproductive processes of both males and females, stimulating the growth of ovarian follicles in females and spermatogenesis in males.

Oxytocin

A hormone and neurotransmitter involved in childbirth and lactation, also associated with behaviors like bonding, trust, and empathy.

Fight or Flight

A physiological response to perceived harmful events, attacks, or threats to survival, preparing the body for defensive or evasive action.