Posted by **Jason** on Saturday, July 26, 2008 at 4:04am.

Assuming a tax rate of 50%, the after-tax cost of a $200,000 dividend payment is?

A. $200,000

B. $100,000

C. $-100,000

D. none of the above

O.K., given a $200,000 after-tax dividend payment and a 50% tax bracket. That means the company had at least $400,000 or more before taxes.

The after-tax cost of a $200,000 dividend payments could be $200,000 or more.

I think the answer is A or D, could you guide me toward the correct answer?

## Answer This Question

## Related Questions

- finance dividend payment - 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 ...
- finance after tax profit margin - The ABC Corp. had net income before taxes of $...
- Finance - You purchase a machine for $50,000, depreciated straight-line to a ...
- Economics - The marginal tax rate is defined as the extra taxes paid on ...
- 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 ...
- Finance - You are provided the following information on a company. The total ...
- Finance - NET INCOME BEFORE TAXES OF $200,000 AND SALES OF $2,000,000. IF IT IS ...

More Related Questions