Hypothetical - Let's say I'm considering purchasing some stock for dividend income and lets say it's FMG for example, which was paying 4 cents in April 2012.
The ASX website lists the franking amount under the '% Franked' column as 100% - but under the 'Further Information' column it shows "4C FRANKED @ 30%".
Q1: In this case, what is it actually franked at, 100% or 30%? And if it's 30%, why would it not be listed as such under the % Franked column?
Q2: So, with the above info if I bought 10,000 shares of FMG prior to it's ex-div date, what could I expect to receive in a dividend payment, assuming I'm an average wage earner (for tax purposes)?
A) 10,000 x 0.04 = $400
B) 10,000 x 0.04 = $400 x 30% = $120
C) 10,000 x 0.04 = $400 x 70% = $280
[above is excluding any tax implications of course]
Q3: Furthermore - what if the dividend actually paid more than the current physical share price (which I have seen on occasion). How can they pay more than their underlying share price?