You are comparing the dividend policies of three dividend-paying firms in the United Stated (company tax rate is 30%). You have collected the following information on the ex-dividend behavior of these firms.

1. What are the associated franking credits for three companies at the given franked dividends?
2. How much does the market value the associated franking credits (a.k.a. , round two digits)?
3. If you were a tax-exempt domestic investor, which company would you use to make dividend arbitrage profits? How would you go about doing so?
4. Show the assumption(s) you have made to solve the questions above.

A Gas B Gas AB Electric Cum-price 50 70 100 Ex-price 47 67 95 3 3 5 Fully franked Dividends/share A Gas B Gas AB Electric Cum-price 50 70 100 Ex-price 47 67 95 3 3 5 Fully franked Dividends/share