Webster Holding Ltd is a company which owns a number of fashion brands. If Webster Holdingmakes a taxable profit of $1,000,000 in the 2012 financial year and the company tax rate is 30%, what is the maximum franking credit that can attach to a dividend paid from that profit?

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The maximum franking credit that can attach to a dividend paid is equal to the company tax rate of 30% multiplied by the dividend amount. Therefore, the maximum franking credit for a dividend paid from a taxable profit of $1,000,000 is $300,000 (30% x $1,000,000).

Webster Holding Ltd Is a Company Which Owns a Number