Posted by Jason on Friday, July 25, 2008 at 12:45pm.
I had a light bulb go off above my head.
this question is not about the math or numbers...it is a play on words.....
the after-tax cost of $200,000 dividend ......after-tax is the key
the only way to get to $200,000 after-tax of 50% is to have $400,000 or more before taxes, so the after-tax cost of a $200,000 dividend payment is $400,000 or more.
Then answer must be D...none of the above....is this correct???
Related Questions
Finance (after-tax cost) - Assuming a tax rate of 50%, the after-tax cost of a $...
aaa - Assuming a tax rate of 40%, the after-tax cost of a $200,000 dividend ...
Economics - The marginal tax rate is defined as the extra taxes paid on ...
Economics - The marginal tax rate is defined as the extra taxes paid on ...
Finance - You are provided the following information on a company. The total ...
finance after tax profit margin - The ABC Corp. had net income before taxes of $...
Finance 200 - The Bubba Corp. had earnings before taxes of $200,000. and sales ...
Personal Finance Concept - Bernie and Pam Britten together earn $100,000 a year...
finance (after-tax profit margin) - The ABC Corp. had net income before taxes of...
Finance - NET INCOME BEFORE TAXES OF $200,000 AND SALES OF $2,000,000. IF IT IS ...
For Further Reading