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Unformatted text preview: statement purposes is the same, and therefore, there is no deferred income tax or future income tax liability in this problem (i.e., capital cost allowance is the same as financial statement depreciation). ABC repaid some of their short-term debt at year-end 2008. The interest rate on debt is 10%. ABC made capital expenditures of $105 at year-end 2008. The increase in ABCs trade capital between year-end 2007 and year-end 2008 was $274.4. ABC paid dividends to shareholders of $55 during 2008 (in total rather than per share). ABC's tax rate is 40%. ABCs 2008 net income was $600. ABCs used $X in 2008 to repurchase their own common shares. Required: Find the amount of ABCs 2008 share repurchase, $X. 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