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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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