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Question 3 1 pts A corporation receives $4 million in dividends from another corporation. Suppose these dividends are eligibl
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Answer #1

Answer will be d) 10.5%

As 70% of the dividends are tax deductible, so effectively the tax would be applied on only 30% of the dividends received. So,

30% of dividends * Tax rate = 30% of 35%

= 10.5% effectively

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