Assume that Grand Canyon Medical Center, a for-profit hospital, has $8 million in taxable income for 2016 and its tax rate is 28%.
a. Given this information, what is the firm's net income?
b. Suppose the hospital pays out $750 thousand in dividends. A stockholder receives $17 thousand. If the stockholder's tax rate on dividends is 20%, what is the after-tax dividend?
Please show work.