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The Shares of ABC Ltd Have a Market Price of $4

Question 8

Multiple Choice

The shares of ABC Ltd have a market price of $4 and an annual dividend of 17.5 cents per share fully franked at the tax rate of 30 per cent.Calculate the dividend yield after company tax but before personal tax.


A) 16%
B) 2.56%
C) 6.25%
D) Cannot be calculated as not enough information is provided.

Correct Answer:

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