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You, as an Australian resident, hold shares in FIN222 Ltd which you purchased 2 years ago for $30 per share. They are now selling for

You, as an Australian resident, hold shares in FIN222 Ltd which you purchased 2 years ago for $30 per share. They are now selling for $37 per share. You have a marginal tax rate of 37% while the corporate tax rate is 30%. Under the imputation tax system, would you prefer to receive $7 special dividends or sell the shares and benefit from capital gains? Show all your workings.

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