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Unformatted text preview: depreciation). ABC repaid $200 of their short-term debt at year-end 2003. Therefore, ABC's 2003 interest expense is the interest rate on short-term debt times short-term debt at the beginning of 2003 (year-end 2002). The interest rate on ABC's short-term debt is 8% per annum. ABC made capital expenditures of $365 at year-end 2003. Because these capital expenditures were at year-end, ABC’s 2003 depreciation expense (also CCA) is a rate for depreciation times Net Fixed Assets at the beginning of 2003 (year-end 2002). The depreciation rate is 5% per annum. ABC paid dividends to shareholders of $X during 2003. ABC's tax rate is 40%. Also, during 2003, ABC sold new shares to new shareholders in the amount of $125 (no shares were repurchased). ABC’s 2003 free cash flow was $253. Required: How much did ABC pay in dividends (in total rather than per share) to shareholders during 2003? Solution...
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This note was uploaded on 02/10/2011 for the course BUS 312 taught by Professor Alan during the Spring '03 term at Simon Fraser.
- Spring '03