True, profits of a large corporation are taxed twice, once a corporate income and again as personal income of stockholders. This is because the corporation is taxed when they earn the profit but then the stockholders are taxed as it is paid out as income/earnings.
Answer:
Dividend growth rate anticipated = 14.66%
Explanation:
Using dividend growth model we have
P
= 
Where P
= Current market price = $120
D
= Dividend to be paid at year end or next year = $1.37
K
= Expected return on equity = 15.8%
g = Expected growth rate
Now putting values we have
$120 = 
0.158 - g = 
0.158 - 0.0114 = g
0.1466 = g = 14.66%
Here u go this is really helpful I just had this question yw