Samantha lives under an imputation tax system. Her income tax rate is 30%, which applies to all of her income, including

Business, Finance, Economics, Accounting, Operations Management, Computer Science, Electrical Engineering, Mechanical Engineering, Civil Engineering, Chemical Engineering, Algebra, Precalculus, Statistics and Probabilty, Advanced Math, Physics, Chemistry, Biology, Nursing, Psychology, Certifications, Tests, Prep, and more.
Post Reply
answerhappygod
Site Admin
Posts: 899603
Joined: Mon Aug 02, 2021 8:13 am

Samantha lives under an imputation tax system. Her income tax rate is 30%, which applies to all of her income, including

Post by answerhappygod »

Samantha lives under an imputation tax system. Her income tax
rate is 30%, which applies to all of her income, including wages,
interest income and dividend income. Samantha owns 1000 shares of
Rio Inc. which has 3.2 billion shares outstanding and taxable
income of $1.8 billion (in the current year). Rio’s pays corporate
tax rate at 28% and its payout ratio in the past has been 60%. Rio
has just announced that it will maintain the past payout ratio and
all dividends (to be paid next month) will be fully franked. Given
this information, if Samantha had lived under a classical tax
system, which of the following is closest to the additional tax she
would have to pay as a Rio shareholder?
$72.90
$82.45
$66.15
$45.25
None of the other answers
Join a community of subject matter experts. Register for FREE to view solutions, replies, and use search function. Request answer by replying!
Post Reply