Question 3 2 pts AMZ, an Australian company, has just announced a fully franked cash dividend of $3 per share in a market where the statutory corporate tax rate is 30%. An Australian resident shareholder holds one share in AMZ and pays tax at a marginal tax rate of 35%. Which of the following statements is correct with respect to the situation described above? a) The franking credit received by this shareholder will be $0.90 (to the nearest cent). Oc) The shareholder's after-tax net return from the dividend will be close to $1.95 (to the nearest cent). e) None of the other statements is correct. d) More than one of the other statements is correct. b) The shareholder's personal tax payment on the dividend will be $1.05 (to the nearest cent). D Question 4 Which of the following statements is correct in relation to long-run performance of IPOs? More than one of the other statements is correct in relation to long-run performance of IPOs. O The investment banking conflict hypothesis suggests that IPOs underperform in the long-run because investment bankers tend to underprice the issue to benefit themselves and their other clients. O None of the other statements is correct in relation to long-run performance of IPOS. O The long-run underperformance of IPOs might be explained by investment bankers withdrawing efforts that create the impression of excess supply of shares by the IPO company. The window of opportunity hypothesis suggests that companies tend to issue shares in hot markets which then lead to the long-run underperformance of IPOS. 2 pts