Question
Susan owns all the debt and equity that is issued by Pinder Ltd. Pinder Ltd has an EBIT of $504,937. Of that EBIT, Pinder Ltd
Susan owns all the debt and equity that is issued by Pinder Ltd. Pinder Ltd has an EBIT of $504,937. Of that EBIT, Pinder Ltd pays interest expenses of $159,368 and distributes all net income as dividends. The corporate tax rate is 28%, and Susans personal income tax rate is 45%, applicable to both dividend and interest income. Susan currently lives under the classical tax system. Based only on the information above, how much more after-tax income would Susan have earned from interest and dividends under an imputation tax system? (round to the nearest two decimal places)
Group of answer choices
None of the other answers.
$54,218.60
$53,217.63
$53,717.84
$54,717.63
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