Calculate the post-tax dividend per share for an investor who pays 37% marginal tax on their dividend
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Question:
26. What is the post tax dividend received by an investor who pays tax at 42% when they own 155 shares in a company that has 300m shares on issue has earnings of $475m of which 90% is generated in Australia (ie the franking credit is 90%) and has a dividend payout ratio of 80%. The company tax rate is 30%?
27. What is the post tax dividend received by an investor who pays tax at 10% when they own 155,000 shares in a company that has 800m shares on issue has earnings of $825m of which 78% is generated in Australia (ie the franking credit is 78%) and has a dividend payout ratio of 72%. The company tax rate is 28%?
28. What is the post tax dividend received by an investor who pays tax at 37% when they own 26,754 shares in a company that has 985m shares on issue has earnings of $2,745m of which 92% is generated in Australia (ie the franking credit is 92%) and has a dividend payout ratio of 82.5%. The company tax rate is 30%?
Related Book For
Foundations of Financial Management
ISBN: 978-1259024979
10th Canadian edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
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