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Heading 1 Subtitle Styles Pane 1) Moncton Meats is a
corporation that earned $3 per share before it paid any
taxes. The firm retained $1 of earnings for reinvestment,
and distributed what remained in dividend payments. You
hold 20,000 shares of Moncton Meats. The corporate tax
rate is 30%, dividend earnings are taxed at 20%, and the
personal income tax rate is 40%. a) What is the amount of
the dividend per share? (1 mark) b) What is the total value
of your dividends received after all taxes are paid? (1
mark) c) suppose instead that Moncton Meats is a sole
proprietorship, and you are the owne Explain how the sole
proprietorship is taxed differently from the corporation.
Calculate your per share after-ta earnings from the sole
proprietorship, assuming you pay the same dividend per
share as in part a). Also calculate the difference in your
after-tax earnings between being the sole proprietor and
being a shareholder in the corporation. (3 marks) 2) Go to
the Toronto Stock Exchange website at tmx.com. Look up
the stock market quote for Barrick Gold Corporation (go to
the top right comer, scroll over \"Get Quote\" and enter
\"ABX\". Click \"Go\".) Scroll down and click on the
Financials tab. This will bring up the most recent balance
sheet. You can also access the cash flow and income
statements by clicking the appropriate links. You can
expand each item to view the subcategories by clicking on
the item. For example, click on current assets to find the
amount of cash on the balance sheet. Note that the
numbers displayed are in millions, and units may need to
be adjusted for some of the calculations below. Use the
annual information from the 2014 financial statements, as
well as the information under the \"Quote\" tab (market
cap, shares outstanding). Some of your final answers will
depend on when you access the information, and I will
provide a range of numbers for the solutions to these

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questions in the assignment solution. Calculate the
following ratios (show the inputs for each calculation. Each
question is worth 1 mark. Total 9 marks): a) Market-to-
book ratio b) Current ratio c) Quick ratio d) Gross Margin
e) Operating Margin Net Profit Margin g) ROA h) ROE
Solution
Part a:
EPS after taxes = EPS before taxes x (1- tax rate)
= $3 x (1-0.30)
= $2.10
Dividend per share = EPS Addition to retained earnings
per share
= $2.10 - $1
= $1.10
Part b:
Total dividend received= Dividend per share x No. of
shares x (1- tax rate)
= $1.10 x 20,000 x (1-
0.20)
= $17,600
Part C
If it was a sole proprietorship firm, they had to pay

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96% Sun 6:29 PM a -1 [Compatibility Mode] Search in Document AaBbCCDdEee Caption Normal No spacing Heading 1 Subtitle Styles Pane 1) Moncton Meats is a corporation that earned $3 per share before it paid any taxes. The firm retained $1 of earnings for rei nvestment, and distributed what remained in dividend payments. You hold 20,000 shares of Moncton Meats. The corporate tax rate is 30%, dividend earnings are taxed at 20%, and the personal income tax rate is 40%. a) What is the amount of the dividend per share? (1 mark) b) What is the total value of your dividends received after all taxes are paid? (1 mark) c) suppose instead that Moncton Meats is a sole proprietorship, and you are the owne Explain how the sole proprietorship is taxed differently from the co rporation. Calculate your per share after-ta earnings from the sole proprietorship, assuming you pay the same dividend per share as ...
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