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

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

Subject:FinancePrice:2.86 Bought9

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

pur-new-sol

Purchase A New Answer

Custom new solution created by our subject matter experts

GET A QUOTE

Answer Preview

Please find the solution as below

Tax rate = 34%

Dividend = 200000

After tax cost of dividend = 200000*34%= 68000

Therefore, option (b) is correct.