Answer:
1.66
Explanation:
From the question above, S corporation earns $2.07 per share before taxes are paid.
$2.07 is received for each share
The marginal tax rate is 20%
= 20/100
= 0.2
Therefore, the amount of shares that is left after payment of taxes can be calculated as follows
Amount of shares left= Price per share-(Price per share×tax rate)
= $2.07-($2.07×0.2)
= $2.07-0.414
= 1.66
Hence the amount of shares left after taxes have been paid is 1.66
