Income tax payable by investor on partly-franked dividend

Assignment Help Financial Management

Reference no: EM131944588

Condor Limited is listed on the ASX and earns part of its income in Australia, and part overseas where it is required to pay tax overseas. The Australian company tax rate is 30 per cent. Condor Limited can provide dividend imputation to Australian shareholders from Australian tax paid. Assume the shareholder’s marginal tax rate is 37 per cent plus the Medicare levy of 2 per cent. The investor receives a 70 per cent partly-franked dividend of $12,700

Find the income tax payable by the investor on the partly-franked dividend.

Then re-calculate the income tax payable if the dividend was fully franked.

Reference no: EM131944588

Questions Cloud

What is bellfont production cost per door stopper : Bellfont Company produces door stoppers. August production costs are below: Door stoppers produced 78,000 Direct material (variable) $20,000 Direct Labor.

How investors react to accounting-based profit fluctuations : Behavioral finance is the study of how investors react to accounting-based profit fluctuations. How investors react to interest rates and foreign currency.

What is the theoretical ex-rights share price of firm : What is the theoretical ex-rights share price of the firm? What is the value of the right?

What is the calculated valie for the best alternative : Bell was in the process of purchasing new equiptment. The ownership considered three alternatives. Each provide same service over their useful lives.

Income tax payable by investor on partly-franked dividend : Find the income tax payable by the investor on the partly-franked dividend. Then re-calculate the income tax payable if the dividend was fully franked.

Disucss the common takeover defense strategies : Ben and Jerry's Homemade: This case examines issues of asset control for Ben & Jerry's Homemade, Inc., in light of the outstanding takeover offers by Chartwell.

Specifically about position and responsibilities interests : What specifically about the position and its responsibilities interests you? Why do you feel the job fits with your career interests, aspirations and skill set?

What is the interest rate of return on this disguised loan : What is the interest rate of return on this disguised loan? Is the conventional mortgage better than the lease?

Benefit to companies of paying executives with stock options : What are some potential benefits to companies of paying executives with stock options? What are some potential risks to companies of paying executives with stoc

User Account

All Pages