Question
Susan owns all the debt and equity that is issued by Pinder Ltd. Pinder Ltd has an EBIT of $492,722. Of that EBIT, Pinder Ltd
Susan owns all the debt and equity that is issued by Pinder Ltd. Pinder Ltd has an EBIT of $492,722. Of that EBIT, Pinder Ltd pays interest expenses of $187,717 and distributes all net income as dividends. The corporate tax rate is 35%, and Susans personal income tax rate is 41%, 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
$62,483.19
$62,983.53
None of the other answers.
$61,982.56
$61,483.32
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