What rate k, the percentage of dividends that are franked in a dividend tax imputation system, would equate to a tax rate of 15 If necessary, assume the 2003 top tax rates ...

Assume t p 35 t c 35 R c 10 and 100 payout of all aftertax corporate profits each year as dividends ...

What rate k, the percentage of dividends that are franked in a dividend tax imputation system, would

Question:

What rate k, the percentage of dividends that are franked in a tax imputation system, would equate to a tax rate of 15%? If necessary, assume the 2003 top tax rates.
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...