Wednesday

August 27, 2014

August 27, 2014

Posted by **Jason** on Friday, July 25, 2008 at 12:45pm.

A. $200,000

B. $100,000

C. $-100,000

D. none of the above

please talk me through this one ...I am completely lost

- finance dividend payment -
**Jason**, Friday, July 25, 2008 at 1:12pmI 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 ...

Personal Finance Concept - Bernie and Pam Britten together earn $100,000 a year...

Finance - You purchase a machine for $50,000, depreciated straight-line to a ...

finance part 2 - 11. Whit a Subchapter S corporation A. corporate income is ...

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 ...