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Melody lives under an imputation tax system. Her income tax rate is 3 0 % , which applies to all of her income, including wages,

Melody lives under an imputation tax system. Her income tax rate is 30%, which applies to all of her income, including wages, interest income and dividend income. Melody owns 1000 shares of Orica Inc. Orica Inc. has 4 billion shares outstanding and had taxable income of $2.5 billion. If Orica corporate tax rate is 35% and its payout ratio is maintained at 70%. Assuming all dividends paid are fully franked, how much more tax need to be paid by Melody if she had lived under a classical tax system? (Round to the nearest two digits)
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$29.25
$107.42
$187.20
$560.00
None of the other answers.

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