Response to the following problem:
DIV Corporation received $5 million in dividends and had $10 million in other taxable income. DIV's income is taxed at a flat rate of 30%.
a. What is DIV's tax bill if there is no dividends-received deduction?
b. What is DIV's tax bill if a 60% dividends-received deduction is allowed?
c. What is DIV's tax bill if a 70% dividends-received deduction is allowed?
d. What is DIV's tax bill if a 80% dividends-received deduction is allowed?