Tofino Toffee Is a Corporation That Earned $5 Per Share

question 3

Multiple Choice

Tofino Toffee is a corporation that earned $5 per share before it paid any taxes.The firm retained $2.50 of after-tax earnings for reinvestment,and distributed what remained in dividend payments.You hold 6,000 shares of Tofino Toffee in a tax-free savings account,and 4,000 shares outside of a tax-free savings account.If the corporate tax rate was 25% and dividend earnings were taxed at 15%,what was the value of your dividend earnings received after all taxes are paid?

• A)$12,500
• B)$11,750
• C)$10,625
• D)$23,500
• E)$13,175

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Definitions:

Consumer Decision

The process by which individuals select, purchase, use, and dispose of goods and services, influenced by various personal and environmental factors.

Attitudes

A settled way of thinking or feeling about something, which reflect an individual's views, beliefs, and predispositions towards objects, people, and events.

Decision Making

The cognitive process of selecting a course of action from among multiple alternatives, typically involving some form of problem-solving or judgment.

Evoked Sets

The group of brands or products a consumer considers when making a purchase decision.