BUS 312 Lecture Notes - Lecture 3: Retained Earnings, Deferred Income, Contribution Margin

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 312
• Professor: George Blazenko

Document Summary

Feb. 05, 2019: the following information is available on the financial accounts of abc corporation. Notes: "equity" represents the sum of all of the accounting equity accounts (that is, share- capital plus retained earnings). Abc"s 2014 incremental short-term borrowing was at the beginning of 2014. The dollar amount that abc paid in dividends to shareholders during 2014 was (in total, not per share). Abc made net capital expenditures (e. g. net of disposals) of at the beginning of 2014. Abc repurchased shares during 2014 in the amount of. Abc"s 2014 rate of return on invested capital with beginning of year invested capital was. Abc uses a depreciation rate of 5% per annum for accounting and tax calculations. Required: find abc"s 2014 fcf with both the operating and the financial calculations (independently): abc company has debt and common equity in its financial structure. The interest rate on debt is 10% per annum.