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Melody lives under an imputation tax system. Her income tax rate is 4 0 % , which applies to all of her income, including wages,

Melody lives under an imputation tax system. Her income tax rate is 40%, which applies to all of her income, including wages, interest income and dividend income. Melody owns 2000 shares of Orica Inc. Orica Inc. has 3 billion shares outstanding and had taxable income of $5 billion. If Orica corporate tax rate is 35% and its payout ratio is maintained at 80%. 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?

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