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How much more after-tax income would Susan have earned

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Question - Susan owns all the debt and equity that is issued by Pinder Ltd. Pinder Ltd has an EBIT of $504,937. Of that EBIT, Pinder Ltd pays interest expenses of $159,368 and distributes all net income as dividends. The corporate tax rate is 28%, and Susan's personal income tax rate is 45%, applicable to both dividend and interest income. Susan currently lives under the classical tax system. Based only on the information above, how much more after-tax income would Susan have earned from interest and dividends under an imputation tax system?

a. $54,218.60

b. $53,217.63

c. $53,717.84

d. $54,717.63

Reference no: EM133066901

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