Early Bird Bakeries Ltd. (EBB) is planning to pay a special dividend per share, over and above
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Calculate the maximum special dividend per share EBB could pay at the end of the fourth quarter of 2012, assuming a bank covenant prevents retained earnings from falling below $500,000.
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Quarterly Dividends Per Share Year 2010 2011 2012 0.25 $0.30 $0.35 Number of Shares Outstanding 600,000 1610,000 1,625,000 Net Income ($000) $3,000,000 $3.200,000 $3,350,000
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Without the special dividend EBB would have the following retained earnings at the en...View the full answer
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Related Book For
Financial Management for Decision Makers
ISBN: 978-0138011604
2nd Canadian edition
Authors: Peter Atrill, Paul Hurley
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