Assume that Provident Health System ,a for-profit hospital ,has 1 million in taxable income for 2011,and its tax rate is 30 percent.
a. Given this information, what is the firm's ne income? (Hint:net income is what remains after taxes have been paid.
b. Suppose the hospital pays out $ 300,000 in dividends.A stockholder receives $ 10,000.If the stockholder's tax rate on dividends is 15 percent ,what is the after -tax dividend?