Could you please help clarify the Buy Back presentation on CBA for a SMSF in pension phase?

Hi Paul, I wanted to clarify the Buy Back presentation on CBA for a SMSF in pension phase. If the purchase price was $80 and the Buy Back price was $86 you mentioned the Capital portion was ~$21 and the Dividend portion was ~$64. If the Franking Credit is part of the Dividend then I am uncertain how the total return gets to ~$113? Would you shed some light.

A: The franking credits are on top of this – will come back as a tax refund

On a franked dividend of $64.34, the franking credits are $27.57

Total return = capital component + franked dividend + franking credits

= $21.66 + $64.34 + $27.57

= $113.57


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