What is the after-tax dividend

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Reference no: EM131361012

Assume that Grand Canyon Medical Center, a for-profit hospital, has $8 million in taxable income for 2016 and its tax rate is 28%.

a. Given this information, what is the firm's net income?

b. Suppose the hospital pays out $750 thousand in dividends. A stockholder receives $17 thousand. If the stockholder's tax rate on dividends is 20%, what is the after-tax dividend?

Please show work.

Reference no: EM131361012

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