You Are a Shareholder in a Corporation Which Has Announced

question 66

Multiple Choice

You are a shareholder in a corporation which has announced a profit of $6 per share, of which it retains $2 for reinvestment and distributes the rest as dividend payments. A franking credit of $1.71 per share attaches to the dividend. Given that the personal tax rate is 35%, how much tax must you pay per share?

• A) $0.28
• B) $3.90
• C) $0
• D) $2.00

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Definitions:

Pollution Permits

Certificates that allow entities to emit a certain amount of pollutants; can be bought, sold, or traded in a regulatory market.

Marginal Benefits

The additional enjoyment or advantage obtained from using one more unit of a good or service.

Pollution Emissions

The release of pollutants, harmful chemicals, or substances into the environment, typically as a byproduct of industrial activity or transportation.

Total Pollution Emissions

Total Pollution Emissions refer to the sum of all harmful pollutants released into the environment by human activities, including industrial processes, vehicles, and agriculture.