Suppose you have invested in Rio Tinto Group listed on ASX and the number of shares held

is $1770.$ In Mar $2023,$ the company paid a dividend per share is $$2\mathrm{.}3.$ The dividend you received was fully franked given that Australia

has a dividend imputation system. The company tax rate was $30\%$ at that time, and your

marginal tax rate is $43\mathrm{.}0\%.$

a$)$ How much tax do you need to pay for the total dividend received?

b$)$ Would your answer to part a$)$ be different if a classical taxation system is applied?

Show calculations.

c$)$ Why franking credits are particularly preferred by self$-$funded retiree investors?