You are comparing the dividend policies of three dividend paying firms in Australia (company tax rate is 30%). You have collected the following information on the ex-dividend behaviour of these firms. NE Gas SE Gas NW Electric Cum-price 50 70 100 47 67 95 Ex-price Fully franked Dividends/share 3 3 5 a. What are the associated franking credits for three companies at the given franked dividends? (1.5 marks) b. How much does the market value the associated franking credits (a.k.a. y, keeping two digits, eg. 0.15)? (1.5 marks) c. If you were a tax-exempt Australian domestic investor, which company would you use to make dividend arbitrage profits? How would you go about doing so? (2 marks) You are comparing the dividend policies of three dividend paying firms in Australia (company tax rate is 30%). You have collected the following information on the ex-dividend behaviour of these firms. NE Gas SE Gas NW Electric Cum-price 50 70 100 47 67 95 Ex-price Fully franked Dividends/share 3 3 5 a. What are the associated franking credits for three companies at the given franked dividends? (1.5 marks) b. How much does the market value the associated franking credits (a.k.a. y, keeping two digits, eg. 0.15)? (1.5 marks) c. If you were a tax-exempt Australian domestic investor, which company would you use to make dividend arbitrage profits? How would you go about doing so? (2 marks)