The following questions can be used with Standard & Poor's Educational Version of Market Insight.
Marginal and Average Tax Rates
Download the annual income statements for Big Rock Brewery Ltd. (BEERF). Looking back at Table 2.7, what is the marginal income tax rate for Big Rock? Using the total income tax and the pretax income numbers calculate the tax rate for Big Rock. Is this number greater or less than the marginal rate? Why?
Net Working Capital
Find the annual balance sheets for Air Canada (ACNAF) and CHC Helicopter Corp. (FLYA). Calculate the net working capital for each company. Is Air Canada's net working capital negative? If so, does this indicate potential financial difficulty for the company? What about CHC Helicopter?
Per Share Earnings and Dividends
Find the annual income statements for Abitibi Consolidated Inc. (ABY), Precision Drilling Corp. (PDS), and Canwest Global Communications (CWG). What are the earnings per share (EPS Basic from operations) for each of these companies? What are the dividends per share for each company? Why do these companies pay out a different portion of income in the form dividends?
Cash Flow Identity
Download the annual balance sheets and income statements for Domtar Inc. (DTC). Using the most recent year calculate the cash flow identity for Domtar Inc. Explain your answer.
2002 McGraw-Hill Higher Education