QUESTION 8 of 10:As a corporation, you want to distribute money to shareholders as a dividend. If the dividend is taxed at a rate of 20% and the dividend is 1 per share, how much money will a shareholder of 10,000 shares get after-tax? a) 8,000 b) 8,250 C) 8,400 d) 9,000

To solve this problem, we need to calculate the after-tax amount of money a shareholder will receive for each share and then multiply it by the number of shares.<br /><br />Given information:<br />- Dividend tax rate: 20%<br />- Dividend per share: $1<br />- Number of shares: 10,000<br /><br />Step 1: Calculate the after-tax amount of money per share.<br />After-tax amount per share = Dividend per share × (1 - Dividend tax rate)<br />After-tax amount per share = $1 × (1 - 0.20) = $0.80<br /><br />Step 2: Calculate the total after-tax amount of money for 10,000 shares.<br />Total after-tax amount = After-tax amount per share × Number of shares<br />Total after-tax amount = $0.80 × 10,000 = $8,000<br /><br />Therefore, the correct answer is:<br />a) $8,000