Benny-Duke Inc

question 21

True/False

Benny-Duke Inc. reported a net income of $7 million but paid no dividends to its shareholders. The shareholders should sue the company for failure to provide a return on their equity investment.

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Definitions:

Book Value

The net value of a company's assets minus its liabilities and preferred stock, often compared to its market value.

Operating Cash Flow

The cash generated from a company’s normal business operations, indicating its ability to generate sufficient revenue to maintain operations.

CCA Class

Categories within the Canadian tax system that determine the depreciation rate for tax purposes on tangible capital assets, based on the type of asset and its expected life.

Tax Rate

The rate at which a person or business is taxed by the government on their earnings or revenue.