A C Corporation Earns $8

question 25

Multiple Choice

A C corporation earns $8.30 per share before taxes and the company pays a dividend of $4.00 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) $2.72
• B) $4.08
• C) $4.76
• D) $3.40

---

Definitions:

Impeachment

The formal process by which governmental officials can be accused and tried for misconduct, with possible removal from office upon conviction.

Executive Privilege

Executive Privilege is the right claimed by the President of the United States and other members of the executive branch to withhold information from Congress or the courts.

Supreme Court

The highest federal court in the United States, with the ultimate judicial authority to interpret and decide upon the constitutionality of laws.

Watergate Scandal

A major political scandal in the early 1970s involving the Nixon administration's attempt to cover up its involvement in a break-in at the Democratic National Committee headquarters.