An S corporation earns $9.10 per share before taxes. The corporate tax rate is 39%, the personal tax rate on dividends is 15%, and the personal tax rate on non-dividend income is 36%

What is the total amount of taxes paid if the company pays a $5.00 dividend?
A) $3.28
B) $3.93
C) $2.62
D) $4.59

Answer: A

Business

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