19 July 2010
Okay so much money does wal-mart make and does net income include taxes? (read details)?
Posted by admin under: Corporations .
Okay so if you go to wikipedia the link below it says Wal-Mart makes 11.8 billion in NET INCOME. Does that include taxes? Also if you owned all of Wal-Mart would you make 11.8 billion a year then? THE FIGURE presented makes sense if you multiply the Earnings per share times the number of shares HOWEVER why is it then that she stock holders only get 88 cents a share instead of the 3 dollars????
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2 Comments so far...
NGC6205 Says:
20 July 2010 at 10:58 am.
The net income figure is probably after taxes.
The reason a company doesn’t pay out all net income to shareholders is because the company needs to use some of the net income to grow the company. Think about it. If you started your own business and after expenses and taxes you had a net income of $50,000. If you withdrew that entire $50,000 from the company, what would be left to expand the business? It is up to the company how much of their net profit to pay in dividends. Microsoft made billions for years and never paid a cent in dividends until a few years ago.
Dr. Deth Says:
21 July 2010 at 12:51 pm.
most companies don’t pay dividends at all. By reinvesting, the value of the company increases, you make money thru capital gains when you sell the stock