fundamentals of corporate finance 11th canadian edition By Stephen A. Ross Test bank
A) $5.00
B) $3.50
C) $2.75
D) $1.50
E) $1.25
205) You are a shareholder in a corporation. The corporation earns $5 per share before taxes. After it has paid taxes, it will distribute the rest of its earnings to you as dividend. The corporate tax rate is 30% and your personal tax rate on dividend income is 25%. What is the amount of your personal tax on dividend?
A) $0.875
B) $1.25
C) $1.875
D) $2.625
E) $3.50
206) You are a shareholder in a corporation. The corporation earns $5 per share before taxes. After it has paid taxes, it will distribute the rest of its earnings to you as dividend. The corporate tax rate is 30% and your personal tax rate on dividend income is 25%. What is the amount of your after-tax earnings on dividend?
A) $0.875
B) $1.25
C) $1.875
D) $2.625
E) $3.50
207) You are a shareholder in a corporation. The corporation earns $5 per share before taxes. After it has paid taxes, it will distribute the rest of its earnings to you as dividend. The corporate tax rate is 30% and your personal tax rate on dividend income is 25%. What is the amount of combined taxes paid by you and the corporation for each share?
A) $1.50
B) $1.875
C) $2.275
D) $2.75
E) $2.375
208) You are a shareholder in a corporation. The corporation earns $5 per share before taxes. After it has paid taxes, it will distribute the rest of its earnings to you as dividend. The corporate tax rate is 30% and your personal tax rate on dividend income is 25%. What fraction of the corporation’s earnings per share before the taxes did you ‘take home’ after paying taxes?
A) 57.50%
B) 55.00%
C) 52.50%
D) 47.50%
E) 45.00%
209) You are a shareholder in a corporation. The corporation earns $8 per share before taxes. After it has paid taxes, it will distribute the rest of its earnings to you as dividend. The corporate tax rate is 35% and your personal tax rate on dividend income is 20%. What is the amount of corporate tax?
A) $5.20
B) $3.60
C) $2.80
D) $1.60
E) $1.45
210) You are a shareholder in a corporation. The corporation earns $8 per share before taxes. After it has paid taxes, it will distribute the rest of its earnings to you as dividend. The corporate tax rate is 35% and your personal tax rate on dividend income is 20%. What is the amount of dividend?