Priscilla owns 2,000 shares of Corinth Corp, a C corporation. Corinth Corp. has earnings of $75 million and 100,000…

Priscilla owns 2,000 shares of Corinth Corp, a C corporation. Corinth Corp. has earnings of $75 million and 100,000…

Question:

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Priscilla owns 2,000 shares of Corinth Corp, a C corporation. Corinth Corp. has earnings of $75
million and 100,000 outstanding shares. The corporate tax rate is 25%. Priscilla’s personal tax rate
on dividends is 15%. If Corinth Corp.’s dividend payout rate is 40%, then how much does Priscilla
have from her shares after all taxes are paid?

Expert Answer:

Answer rating: 100% (QA)

To calculate the amount Priscilla receives from her shares after all taxes are paid we can follow th
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