A C corporation earns $8.30 per share before taxes and the company pays a dividend of $4.00 per share. 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 after-tax amount an individual would receive from the dividend?
A) $2.72
B) $4.08
C) $4.76
D) $3.40
Answer: D
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