Analysing the Telstra buy-back: Part 2

Key Points Attractive to companies if discount less than the maximum Can work for individuals with the right facts and circumstances Keep an eye on 5 day VWAP calculation In marginal tax rate (for instance, those who earn the bulk of their income from a tax exempt super pension). In the lowest income tax bracket (0% tax rate), the analysis is similar to that of a pension mode super fund (see Table 2 in Part 1). The fact that the (refundable) franking credit is larger than the buy-back discount means the off-market buy-back is more attractive than selling on-market. But...

In marginal tax rate (for instance, those who earn the bulk of their income from a tax exempt super pension).

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