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Morso Corporation Has Declared a $5 Per Share in Dividends

Question 69

Essay

Morso Corporation has declared a $5 per share in dividends.The federal tax rate is 26% and the provincial tax rate is 13.39%.Federal and Provincial tax credits are 13.33% and 5.1% respectively on the grossed up amount of the dividend.The gross up amount is 25%.Determine the average tax rate for dividends.

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