It is characteristic of many top executives to delay taking care of unusual situations until smaller items on their to do list have been taken care of

You own 30,000 shares of a (C) Corporation, which has 100,000 shares outstanding. It produces $1,200,000 in pre-tax profits this year. Its tax rate is 20% and its payout ratio is 75%. You are in the 40% (combined) tax bracket. The tax on your dividends this year will be:

a) 40% x (30,000/100,000) x 1,200,000 x 25% = 36,000 b) 40% x (30,000/100,000) x 1,200,000 = 144,000 c) 40% x (30,000/100,000) x 80% x 1,200,000 = 115,200 d) 40% x (30,000/100,000) x 80% x 1,200,000 x 75% = 86,400 e) 40% x (30,000/100,000) x 80% x 1,200,000 x 25% = 28,800

One principle of our legal system is to acknowledge the equitable considerations of the parties involved. This principle is referred to as ____________________

Fill in the blank(s) with correct word