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A firm pays a fully franked cash dividend of $400 to one of its Australian shareholders who has a personal marginal tax rate of 32%.

A firm pays a fully franked cash dividend of $400 to one of its Australian shareholders who has a personal marginal tax rate of 32%. The corporate tax rate is 40%.

What will be the shareholder's personal tax payable due to the dividend payment?

a.

266.667

b.

-32

c.

213.333

d.

128

e.

-53.333

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