2. Determine the after-tax dividend per 100 shares fir the following shareholders of an Australian company that pays tax, at 30%, on 80% of its earnings generates a profit of 175 million, has 1 million shares on issue, and pays out all its earnings as dividends: a) a charity (ie pays 0% tax) b) A superannuation fund (ie pays 10% tax on dividends) c) An individual that pays at 30% d) An individual that pays tax at 45%

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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2. Determine the after-tax dividend per 100
shares fir the following shareholders of an
Australian company that pays tax, at 30%, on
80% of its earnings generates a profit of 175
million, has 1 million shares on issue, and pays
out all its earnings as dividends:
a) a charity (ie pays 0% tax)
b) A superannuation fund (ie pays 10% tax on
dividends)
c) An individual that pays at 30%
d) An individual that pays tax at 45%
Transcribed Image Text:2. Determine the after-tax dividend per 100 shares fir the following shareholders of an Australian company that pays tax, at 30%, on 80% of its earnings generates a profit of 175 million, has 1 million shares on issue, and pays out all its earnings as dividends: a) a charity (ie pays 0% tax) b) A superannuation fund (ie pays 10% tax on dividends) c) An individual that pays at 30% d) An individual that pays tax at 45%
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