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