Corporation after all corresponding taxes are paid

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Consider a S corporation. The corporation earns $5 per share before taxes. The corporate tax rate is 40%, the tax rate on dividend income is 28%, and the personal income tax rate is set at 28%. What are the shareholder's earnings from the corporation after all corresponding taxes are paid? How much is the total effective tax rate on the corporation earnings? (S Corporation tax treatment-are exempted from double taxation)

Reference no: EM131013734

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