How much of imputation tax credit is attached

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Question -

a. Describe and explain the two Modigliani and Miller propositions, the key assumptions underlying them, and their relevance to capital structure decisions.

b. If a company pays $7,850,000 franked dividend distribution, how much of imputation tax credit is attached with this distribution? Assume tax rate is 27.5% as an Australian base rate entity.

Reference no: EM133170162

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