(b) Angaza Ltd is in high growth sector. It has identified viable projects that can create value forthe firm which it can finance with internally generated funds. The firm raises Kshs.50 millionfrom shareholders and uses this cash to pay them Kshs.50 million in dividends. If dividend istaxed at 10% and capital gains are taxed at 5%, how much will the shareholders receive aftertaxes?

Calculation of shareholders net receipts in kshs: *In general, dividends shall be paid out of…

Angaza Ltd is in high growth sector. It has identified viable projects that can create value fo the firm which it can finance with internally generated funds. The firm raises Kshs.50 millio: from shareholders and uses this cash to pay them Kshs.50 million in dividends. If dividend i taxed at 10% and capital gains are taxed at 5%, how much will the shareholders receive afte taxes?

Angaza Ltd is in high growth sector. It has identified viable projects that can create value fo the firm which it can finance with internally generated funds. The firm raises Kshs.50 millio: from shareholders and uses this cash to pay them Kshs.50 million in dividends. If dividend i taxed at 10% and capital gains are taxed at 5%, how much will the shareholders receive afte taxes?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter15: Dividend Policy

Section: Chapter Questions

Problem 15P

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