Suppose Tetra Finishing Company (TFC) makes a profit of $3 per share and decides to distribute...
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Suppose Tetra Finishing Company (TFC) makes a profit of $3 per share and decides to distribute it all to shareholders as a 50% partially franked dividend of $2.471 per share. Corporate tax rate is 30%. If you hold 1000 shares in TFC and your income tax rate is 30% what is the total amount of tax you will pay to the government or will be paid back to you? Choose the closest answer. O O O O You do not owe anything in taxes, and nothing is owed to you You will pay $900 to the government in taxes You will pay $2471 to the government in taxes You will pay $370 to the government in taxes Suppose Tetra Finishing Company (TFC) makes a profit of $3 per share and decides to distribute it all to shareholders as a 50% partially franked dividend of $2.471 per share. Corporate tax rate is 30%. If you hold 1000 shares in TFC and your income tax rate is 30% what is the total amount of tax you will pay to the government or will be paid back to you? Choose the closest answer. O O O O You do not owe anything in taxes, and nothing is owed to you You will pay $900 to the government in taxes You will pay $2471 to the government in taxes You will pay $370 to the government in taxes
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Related Book For
Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1337614689
9th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
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