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Question- (4 Marks) Assume company income tax rate is 30% and franking credits are available to be passed on to shareholders. Under the imputation tax

Question- (4 Marks)

Assume company income tax rate is 30% and franking credits are available to be passed on to shareholders. Under the imputation tax system, if your marginal personal tax rate is 47%, would you prefer to receive equity investment income in the form of (fully franked) dividend or capital gain? Show all calculations.

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