A C Corporation Earns $7

question 24

Multiple Choice

A C corporation earns $7.40 per share before taxes and the company pays a dividend of $5.00 per share.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 after-tax amount an individual would receive from the dividend?

• A)$0.75
• B)$2.89
• C)$3.64
• D)$4.25

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Definitions:

Depo-Provera

A contraceptive injection containing progesterone that prevents ovulation, used as a form of birth control effective for three months per dose.

Contraceptive

Any method or device used to prevent pregnancy, ranging from hormonal pills and implants to barrier methods like condoms.

Anorexia Nervosa

A serious mental health disorder characterized by an intense fear of gaining weight and a distorted body image, leading to excessive weight loss and malnutrition.

Metabolism

The biochemical processes that occur within a living organism to maintain life, involving the conversion of food to energy and building materials.