it's a funny take on franking credits to think they might be immoral or unfair. You think it is a more moral or fair tax scenario for the govt to tax 30% at the company level and then tax the investor on top of that?
There is also a good argument to be had about the franking credits paid out as a rebate to low tax payers given all taxpayers got a tax reduction when GST was introduced at the same time in 1987- except of course pensioners or people on a low tax rate which was one of the rationale for the introduction. It's an easy political football to get headlines but a lot more complex.
Anyway, back to the buyback and using boomers calcs so an assumed benefit of $14 per share before any tax is paid on the divvy and capital portion. Even at 15% you get back to square approximately unless I am missing something. You likely have to pay more than the $105 to buy back in otherwise why would they bother with the buyback in the first place?
Seems like a very complicated way to bounce the share price, why not just pay a special divvy to all SH?
Ann: CBA announces $6 billion off-market share buy-back, page-22
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$141.65 |
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Mkt cap ! $237.0B | |||
| Open | High | Low | Value | Volume |
| $143.40 | $143.58 | $140.94 | $280.9M | 1.991M |
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| No. | Vol. | Price($) |
|---|---|---|
| 1 | 10164 | $141.60 |
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| Price($) | Vol. | No. |
|---|---|---|
| $141.65 | 1641 | 1 |
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