Case 1 $15,000 is considered to be the dividend which is equal to the current E&P Case 2 No portion of the distribution is considered dividend because the current E&P, which is a deficit, is much more than the accumulated E&P.
EBITDA coverage= (EBITDA+ Lease Paid)/ (Interest + Lease Paid + Principle Paid) = (390000+17400)/ (9500+ 17400+26000) = 7.70 times http://www.college-cram.com/study/finance/ratios-of-debt-management/ebitda-coverage/ Solution assists in computing EBITDA
Remember that dividends paid from C corp are double-taxed as they are not allowed as a deduction for the C corp. In this case, the C corp would have taxable income of 40,000 x 15% = $6000. c.
Consider the case NCR Corp v Korala Associates, Ltd. The suit was related to unauthorized copying of computer software by KAL.
Supreme Court in Varity Corp. v. Howe. This is a violation of 404(a) because it went against the best interest of the beneficiaries, which is also the ruling that was found in Varity Corp. v. Howe (same case as the other question).
In this case, other $1,000 par value bonds will pay interest of only $50 ($1,000*.05) per year, but Mackerel Corp.'s bonds will pay $60 ($1,000*.06) per year.
I attached the study guide. Please NOTE that I didn't execute the Solver which would defeat the purpose of the tutorial if I did. Please take note of the comments for your further understanding of the case and its requirements.
He asked if you felt they had a pretty good case.
She defaulted on the note and the bank sued the corp. The corp. claims she exceeded her authority. Did she? Yes. There are a few different problems in this case. One problem that is evident is called "piercing the corporate veil."
338424 Case Corp: Calculate total interest expense on bonds issued at a premium Case Corp. issued $200,000, 5%, 3-year bonds at 104, with interest payable semi-annually.