Calculate the After-Tax Return to a Shareholder Assuming a Dividend

Calculate the after-tax return to a shareholder assuming a dividend imputation system is used in Australia (if the dividend is fully franked) .The shareholder is currently subject to a marginal tax rate of 40% and receives a dividend of $700 per annum.The corporate tax rate is equal to 30%.

A) $350
B) $600
C) $700
D) $420
E) $490