Q1M - statement purposes is the same, and therefore, there...

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BUSINESS 312: QUIZ NAME ______________________________ Student Number__________________________ Instructions: Open book and open notes. Work independently. Hand-in no additional sheets of paper; use the back of this quiz if you need more space. If you wish to have your quiz returned, use pen rather than pencil. Show your work for full marks. No washroom breaks during the examination period. The following information is available on the financial accounts of ABC Corporation. 2008 EBITDA ? Depreciation 30 Interest 54 2007 2008 Trade Capital ? ? Short-Term Debt ? 480 Net Fixed Assets 905 ? Equity ? ? Invested Capital ? ? NOTES: "Equity" represents the sum of all of the accounting equity accounts (that is, share- capital plus retained earnings). You can presume that depreciation for tax and for financial
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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.

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