Bank of Montreal versus Royal Bank of Canada The Bank of Montreal and Royal Bank of Canada financial statements for the year ended October 31, 2009, can be found on SEDAR (www.sedar.com).
Instructions
(a). What is the average carrying value of each company’s common shares? Compare these values with market prices. What stock exchanges do these banks trade on?
(b). What is the authorized share capital of each company?
(c). Comment on how each company presents its common shares and shareholders’ equity.
(d). Describe the changes (number of shares and price) in each company’s common share accounts over the past three years. What types of activities are contributing to the changes?
(e). What amounts of cash dividends per share were declared by each company during 2009? What were the dollar amount effects of the cash dividends on each company’s shareholders’ equity?
(f). What is each company’s rate of return on common shareholders’ equity for the year ended 2009? Which company gets the higher return on the equity of its shareholders?