7. Suppose an individual subject to a 30 per cent marginal rate of income tax has 2,500 shares in a company that is paying a partially franked dividend of 40 cents per share, with a franking ratio of 0.7 (i.e. 70%). The individual is a resident for taxation purposes. If the company tax rate is 30 per cent:
. (a) What tax credit can the individual claim due to the partially franked dividends?
. (b) What is the tax on the taxable income (i.e. the grossed up dividend) due to the partially franked dividend?
. (c) What tax, if any, is payable by the individual out of the cash dividend payment received?
