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A firm pays a fully franked cash dividend of $50 to one of its Australian shareholders who has a personal marginal tax rate of 20%.
A firm pays a fully franked cash dividend of $50 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. -5
b. 14.2857
c. 10
d. 21.4286
e. -7.1429
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