Given that HD currently has an 80% dividend payout policy, you also show the interest income to
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Given that HD currently has an 80% dividend payout policy, you also show the interest income to lenders, and dividend income to shareholders, assuming both types of investors pay personal tax at 40% in each of the following tax environment: 1) the classic tax system; and 2) the imputation tax system. Calculate shareholder's distributable funds and lender's distributable fund in both system. Explain which tax system is preferable theoretically.Given corporate tax rate is 36.5%
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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