Assume you are an analyst discussing Gazals financials with a potential shareholder in GAZ. The shareholder has a marginal tax rate of 39% (including Medicare Levy) and on the amount they are prepared to invest, would be eligible to receive a fully franked dividend of $7,000 from Gazal Ltd at the next distribution date

why future dividends might be only partly franked if Gazal's New Zealand subsidiary begins to generate profits.

.

b) Calculate the income tax payable by the shareholder showing all workings. Assume the Company tax rate is 30% and shareholder rate is 39%.