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PopOut Enterprises is an Australian$-$based firm that is fully compliant with the domestic franking credit tax system.

PopOut has generated profits of AUD $$300000$ before tax. They wish to invest the money in Treasury bonds at $8\%$ and use the returns to pay dividends to shareholders after a year.

Alternately, they can pay a dividend and allow shareholders to make the investment.

If corporate tax rates are $30\%,$ which option would be preferred by shareholders paying a marginal tax rate of $45\%?$

Select one:

a$.$ Immediate cash dividend

b$.$ Dividend after one year

c$.$ Indifferent between options

d$.$ Cannot determine