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A firm pays a fully franked cash dividend of $150 to one of its Australian shareholders who has a personal marginal tax rate of 20%.

A firm pays a fully franked cash dividend of $150 to one of its Australian shareholders who has a personal marginal tax rate of 20%. The corporate tax rate is 30%. What will be the shareholder's personal tax payable due to the dividend payment?

a.

42.8571

b.

-15

c.

-21.4286

d.

64.2857

e.

30

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