(Cash dividend and taxes) The Barryman Drilling Company from Study Problem 16–10 is reconsidering…

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(Cash dividend and taxes) The Barryman Drilling Company from Study Problem 16–10 is reconsidering its plan to repurchase $1 million of its common stock and instead plans to pay a $1 million cash dividend, which amounts to $2 per share of common stock. If dividends are taxed at 15 percent, what tax liability does this create for Stan Barryman?

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