Part2: Moscow Corporation has declared a $5 per share dividends. The federal tax rate is 30% and the provincial tax rate is 15%. Federal tax credit is 14% and Provincial tax credits is 6%. Tax and tax credit are calculated on the grossed up amount of dividends. Thegross-up rate is 25%. (Hint: For tax calculation, $1 cash dividend is treated as $1.25 taxable amount.) Determine the total tax on $5 dividend and the effective tax rate for dividends. Total combined Federal and Provincial tax on $5 cash dividends $ Combined effective tax rate on cash dividends 0