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Krafstoff of Germany. Kraftstolf is a German-based company that manufactires eioctionic fietanjection caiburetor assemblics for several Iarge automobile companies in Germany. including Mercedes, BMW, and

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Krafstoff of Germany. Kraftstolf is a German-based company that manufactires eioctionic fietanjection caiburetor assemblics for several Iarge automobile companies in Germany. including Mercedes, BMW, and Opel The fim, like inatry firms in Germany todoy, for revising its firancial policies in line with the increasing degreo of disclosure required by firms if they wish to list their shares publicly in or out of Germany Krafistolfs primary problem is that the German corporate income tax code applies a different income tax rate to income depending on whother if is rotained (42%) or distributed to stockholders (32\%) The company's earnings befote tax (EBT) is E483,500,000 a. If Kraftstoff planned to distribute 50% of its net income, what would be its fotal not income and total corporate tax bills? b. If Kraltstoff was attempting to choose between a 40% and 60% payout rate to stockholders, what arguments and values would management use in order to convince: stockholders which of the two payouts is in everyone's best inferest? a. If Kraftstoff planned to distribute 50% of its net incomo, calculate its totai net income and foatl corporate lax bills in the following table. (Round to the nearest whotereura.)

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