MGFB10H3 Lecture Notes - Lecture 1: Cash Flow, Budget Constraint, Income Statement
Document Summary
Choice of projects depend on assumptions and what is your budget constraint. The more debts the more risks the company is facing. Cash and equity belong to creditors and shareholders. Choice of debts or equity depend on the current situation of the economy. Depreciation cannot be included in cash so income statement doesn"t equal to cash flow. Cannot only look at operating expenses but also things like capital spending. 1000-900+300=200 what you spend on capital assets this year interest income dividend income: dividend credit shareholders pay taxes in the corporate level and when they get dividends they need to pay taxes again. Bought shares of potest corporation 2 years ago for ,000. Marginal tax rate is 40%: ,000, ,000, a&b, none of the above. You have not realized the gain yet. Cca rate will be given during the exam. What is the depreciation per year? (1,000,000-100,000)/10 = 900,000/10 = 90,000 accounting. Should never ignore the timing of the cash flow.
