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An S corporation earns $6.50 per share before taxes. The corporate tax rate is 35%,...

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Finance

An S corporation earns $6.50 per share before taxes. The corporate tax rate is 35%, the personal tax rate on dividends is 20%, and the personal tax rate on non-dividend income is 39%. What is the total amount of taxes paid if the company pays a $2.00 dividend?

A.

$3.55

B.

$2.54

C.

$2.03

D.

$3.04

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