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1 of 24 ©2012 McGraw-Hill Ryerson Limited Learning Objectives 3.Outline the many factors to be considered in dividend policy. Calculate aftertax income from dividends and calculate share prices based on earnings multiples. (LO3) 4.Outline the life cycle and growth of dividends. (LO4) 5.Outline dividend payment procedures. (LO5)
2 of 24 ©2012 McGraw-Hill Ryerson Limited Other Factors Influencing Dividend Policy Legal and lender restrictions Cash position of the firm Access to capital markets Desire for control Tax position of shareholders LO3
3 of 24 ©2012 McGraw-Hill Ryerson Limited Sample Calculation of Tax* on Individual Dividend Receipt LO3 Sample Calculation of Tax on Individual Dividend Receipt (2011) Dividend received$1,000 Gross-up (41%) 410 Taxable amount 1,410 Federal tax (at 29%) 409 Less: Federal tax credit (16.44% of $1,410) 232 Federal tax payable 177 Provincial tax payable (10% of $1,410) 141 Provincial tax credit (10% of $1,410) 141 Provincial tax payable 0 Total taxes payable 177 Net dividend ($1,000 - $177) $ 823
1 of 24 ©2012 McGraw-Hill Ryerson Limited Learning Objectives 3.Outline the many factors to be considered in dividend policy. Calculate aftertax income.
©2009 McGraw-Hill Ryerson Limited 1 of Dividend Policy and Retained Earnings Prepared by: Michel Paquet SAIT Polytechnic ©2009 McGraw-Hill Ryerson.
©2012 McGraw-Hill Ryerson Limited 1 of 34 Learning Objectives 4.Calculate the yields on financial claims based on the relationship between current price.
©2012 McGraw-Hill Ryerson Limited 1 of 45 Learning Objectives 1.Define capital budgeting decisions as long-run investment decisions. (LO1) 2.Explain that.
© 2003 The McGraw-Hill Companies, Inc. All rights reserved. Financial Statements, Taxes and Cash Flow Chapter Two.
Chapter 3 In-Class Notes. Background on Taxes Taxes are a source of revenue for our federal, provincial, and municipal governments. We pay taxes on personal.
©2012 McGraw-Hill Ryerson Limited 1 of 34 Learning Objectives 1.Calculate 13 financial ratios that measure profitability, asset utilization, liquidity.
1 Copyright © 2013 McGraw-Hill Ryerson Limited Learning Objectives LO4Explain the three categories of cash flow reported in the cash flow statement and.
©2012 McGraw-Hill Ryerson Limited Learning Objectives 1.Prepare and analyze the four basic financial statements. (LO1) 2.Examine the limitations of the.
© 2014 Cengage Learning. All Rights Reserved. Learning Objectives © 2014 Cengage Learning. All Rights Reserved. LO6 Calculate earnings per share. LO7 Calculate.
© 2012 McGrawHill Ryerson Ltd.Chapter 9 -1 In Canada, taxable income is based on a deduction called Capital Cost Allowance (CCA): Taxable Income = Revenues.
1 Learning Objectives After studying the material in this chapter you will be able to do the following: LO1 Recognize the differences among proprietorships,
Overview of Finance. Financial Management n The maintenance and creation of economic value or wealth.
Chapter 3. SALES SALES - Cost of Goods Sold GROSS PROFIT GROSS PROFIT - Operating Expenses OPERATING INCOME (EBIT) OPERATING INCOME (EBIT) - Interest.
Dividends and Dividend Policy. Dividend Definitions (Cash) Net Income Regular Cash Dividend Extra Dividend Special Dividend Asset SalesLiquidating Dividend.
Copyright © 2006 McGraw Hill Ryerson Limited3-1 prepared by: Sujata Madan McGill University Fundamentals of Corporate Finance Third Canadian Edition.
Learning Objectives Understand the Business – LO1 Explain the role of shares (also called stocks) in financing a corporation. Study the accounting methods.
Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 1999 Financial Statement Analysis © The McGraw-Hill Companies, Inc., Part One: Financial Accounting.
Chapter McGraw-Hill/Irwin Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved. 2 Financial Statements, Taxes, and Cash Flow.
Ratios and Accounting A 1 to 1 training course (get it!)
© 2015 Cengage Learning. All Rights Reserved. Learning Objectives © 2015 Cengage Learning. All Rights Reserved. LO3Perform efficiency analysis of a business.
Financial Statements, Taxes and Cash Flow1 Financial Statements, Taxes and Cash Flows Financial Statements Assets Building $190,000 Accumulated Depreciation.
©2012 McGraw-Hill Ryerson Limited 1 of 39 ©2012 McGraw-Hill Ryerson Limited 3.Define the various marketable securities available for investment by the.
2-0 Cash Flow From Assets Cash Flow From Assets (CFFA) = Cash Flow to Bondholders + Cash Flow to Shareholders Cash Flow From Assets = Operating Cash Flow.
Learning Objectives Understand the Business – LO1 Explain the role of liabilities in financing a business. Study the accounting methods – LO2 Explain how.
© 2014 Cengage Learning. All Rights Reserved. Learning Objectives © 2014 Cengage Learning. All Rights Reserved. LO6Identify factors influencing financing.
Intro to Financial Management Dividend Policy. Review Homework Income stream risks Business risks Operating risk –Break-even analysis –Operating leverage.
Chapter © 2008 McGraw-Hill Ryerson Financial Statements, Cash Flow, and Taxes Prepared by Ernest Biktimirov, Brock University.
© 2003 The McGraw-Hill Companies, Inc. All rights reserved. Dividends and Dividend Policy Chapter Eighteen.
Learning Objectives Understand the Business – LO1 Identify cash flows arising from operating, investing, and financing activities. Study the accounting.
apple apple tree rents apartment building apple apple apple tree apple tree rents rents apartment building apartment building interest interest GIC GIC.
McGraw-Hill/Irwin ©2008 The McGraw-Hill Companies, All Rights Reserved CHAPTER11CHAPTER11 CHAPTER11CHAPTER11 Investment Analysis and Taxation of Income.
© 2012 McGrawHill Ryerson Ltd.Chapter 7 -1 The fraction of earnings retained by the firm is called the plowback ratio The fraction of earnings a company.
Chapter 12 Reporting and Interpreting the Statement of Cash Flows 1© McGraw-Hill Ryerson. All rights reserved.
McGraw-Hill/Irwin Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved. Profit and Changes in Retained Earnings Chapter 12.
Chapter Objectives Be able to: n Explain the different possible relationships that a shareholder may have with a corporation and the implications of each.
Chapter 8 The Analysis of the Statement of Shareholders’Equity.
1 of 24 ©2012 McGraw-Hill Ryerson Limited Learning Objectives 1.Justify management’s decision criteria as to whether internally generated funds should.
Chapter 3. Understanding Financial Statements and Cash Flows.
FINAL ACCOUNTS All companies or corporations ( businesses owned by shareholders) must provide a set of final accounts consisting on three statements:
© 2010 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 11e by Slater Corporations: Stock Values, Dividends, Treasury Stock,
Chapter 2 - Understanding Financial Statements, Taxes, and Cash Flows 2005, Pearson Prentice Hall.
REVIEW OF ACCOUNTING (Chapter 2) §Financial Statements l Balance Sheet l Income Statement l Statement of Cash Flows §Free Cash Flow §Corporate Taxes §Individual.
GOALS BUSINESS MATH© Thomson/South-WesternLesson 2.4Slide 1 2.4State and City Income Taxes Calculate state and city income taxes using a flat tax rate.
McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.
12-0 Dollar Returns 12.1 Total dollar return = income from investment + capital gain (loss) due to change in price Example: You bought a bond for $950.
Learning Objectives Understand the Business – LO1 Describe common operating transactions and select appropriate income statement account titles. Study.
McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Short-Term Financial Planning Chapter 16.
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