Question
24. Assume a corporate tax rate of 30% and a company NPAT of $300million. The company pays out $100million in franked dividends, what is effective
24. Assume a corporate tax rate of 30% and a company NPAT of $300million. The company pays out $100million in franked dividends, what is effective corporate tax rate of the company?
A. 31%.
B. 17%.
C. 15%.
D. 44%.
E. 22%.
answer is E, thanks
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Introduction to Finance Markets, Investments and Financial Management
Authors: Ronald W. Melicher, Edgar A. Norton
16th edition
1119398282, 978-1-119-3211, 1119321115, 978-1119398288
