Question regarding the imputation tax system

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A firm in Australia earns a pretax profit of $A10 per share. It pays a corporate tax of $A3per share (30% tax rate) in taxes. The firm pays the remaining $A7 in dividends to ashareholder in 35% tax bracket. Under the imputation tax system, the amount of tax paid bythe shareholder is ________and the amount the shareholder receives after tax is________a. $A0.5 and $A9.50b. $A0.5 and $A6.50c. $A2.45 and $A4.55d. $A3.5 and $A6.5e. None of the above

Reference no: EM131051634

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