Question
A firm pays a fully franked cash dividend of $200 to one of its Australian shareholders who has a personal marginal tax rate of 25%.
A firm pays a fully franked cash dividend of $200 to one of its Australian shareholders who has a personal marginal tax rate of 25%. The corporate tax rate is 30%. What will be the shareholder's personal tax payable due to the dividend payment?
a. -10
b. 50
c. 71.4286
d. 85.7143
e. -14.2857
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Financial Management
Authors: Rob Quail, Ricardo J. Rodriguez
2nd Edition
1557868441, 9781557868442
