Question
Consider the following income statement for Loblaws (all figures are in $ Millions): Year 2018 2019 2020 Total sales 70,554 74,919 90,124 Cost of goods
Consider the following income statement for Loblaws (all figures are in $ Millions):
Year | 2018 | 2019 | 2020 |
Total sales | 70,554 | 74,919 | 90,124 |
Cost of goods sold | 45,981 | 49,221 | 53,910 |
Selling, general & admin expenses | 13,461 | 14,912 | 17,420 |
Depreciation | 1,982 | 2,091 | 2,509 |
Operating income | 9,130 | 8,695 | 16,285 |
Other income | 0 | 0 | 0 |
EBIT | 9,130 | 8,695 | 16,285 |
Interest expense | 698 | 710 | 734 |
Earnings before tax | 8,432 | 7,985 | 15,551 |
Taxes (40%) | 3,373 | 3,194 | 6,220 |
Net income | 5,059 | 4,791 | 9,331 |
The interest rate tax shield for Loblaws in 2018 and the total amount available to pay out to all investors in Loblaws in 2018 are closest to:
Question options:
| $252 million and $5.349 billion |
| $279 million and $5.757 billion |
| $284 million and $5.910 billion |
| $312 million and $5.935 billion |
| None of the above |
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