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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.
Financial Statements, Taxes, and Cash Flow
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