Webster Holding Ltd Is a Company Which Owns a Number

question 61

Multiple Choice

Webster Holding Ltd is a company which owns a number of fashion brands. If Webster Holding makes a taxable profit of $1 000 000 in the 2016 financial year and chooses to pay 100% of its profit after tax as a dividend, how much tax is paid by shareholders, assuming their marginal tax rate is 45%? Assume the company tax rate is 30%.

• A)$15 000
• B)$450 000
• C)$150 000
• D)$300 000

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Definitions:

Wages

Compensation or earnings paid to an employee by an employer based on the hours worked or the output produced.

Appeal to Force

A logical fallacy where a conclusion is supported by a threat or use of force, rather than by evidence or reasoning.

Business Meeting

A gathering of people within an organization to discuss and make decisions on matters of mutual interest or concern.

Argument

An explanation or series of explanations provided to justify a concept, action, or hypothesis.