An Australian company earns a pretax profit of $10 per share. The company pays a 30% corporate tax and pays ,the remaining $7 in dividends to a shareholder in 40% the bracket. Under the imputation tax system, what is the amount of personal tax that ne shareholder must pay for the $7 dividend that he receives? Zero A$1.00 A$4.00 A$2.10 A$0.90 Learn and Earn Company is financed entirely by common stock that is priced to offer a 20% expected return. If the company repurchases 50% of the stock and substitutes an equal value of debt yielding 8%, what is the expected return on the common stock after refinancing