formulas

Question 1

cost of an ipo

Answer 1

underwriting spread
1) higher stock price - lower stock price
2) total money raised / higher stock price
3) equation 1 answer * equation 2 answer = 4)

expenses = 5)

underpricing
6) (1 + percent) + higher stock price
7) equation 6 answer - higher stock price
8) answer to equation 7 * answer to equation 2 = 9)

total = 4) + 5) + 9)

Question 2

earnings per share

Answer 2

net income / common shares outstanding

Question 3

dividend yield

Answer 3

dividend amount / share price

Question 4

market capitalization

Answer 4

of shares outstanding * share price

Question 5

dividend tax

Answer 5

dividend price * tax rate = share price drop

Question 6

cpp

Answer 6

rate - 5.95% (employee and employer)

basic exemption - $3,500

2024 maximum - $68,500

Question 7

ei

Answer 7

rate – 1.66% (employee) and 1.66% * 1.4 (employer)

basic exemption - $0

2024 maximum - $63,200

Question 8

federal corporate tax rate

Answer 8

small business deduction rate is 9% for the first $500,000

general rate is 15% for amounts above $500,000

the rate for investment income in a corporation is 38.67%

Question 9

rrsp

Answer 9

18% of prior year earned income

2024 max - $31,560

Question 10

tfsa

Answer 10

7,000 annually limit