question archive Assuming a tax rate of 34%, the after-tax cost of a $200,000 dividend payment is Multiple Choice $220,000 $68,000 $130,000 $200,000
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Assuming a tax rate of 34%, the after-tax cost of a $200,000 dividend payment is
Multiple Choice
$220,000
$68,000
$130,000
$200,000

Please find the solution as below
Tax rate = 34%
Dividend = 200000
After tax cost of dividend = 200000*34%= 68000
Therefore, option (b) is correct.

