Canadian Tire Corporation Limited Refer to the financial statements and accompanying notes and discussion of Canadian Tire Corporation Limited for the year ended January 3, 2009 (2008 year-end report) and answer the following questions. The financial statements are available on SEDAR at
(a). What are the issued and authorized shares for both classes of shares that the company has? What percentage of the authorized shares is issued?
(b) Compare the rights that are attached to each share. Are the class A shares more like preferred shares or common shares?
(c). Why does the company repurchase shares every year? How successful was it in achieving its objective in 2008?
(d). How did the company account for the excess of the amount paid on reacquisition over the carrying value of the shares for 2008? Recreate the journal entry.
(e). What was the average carrying value of the shares at the beginning of the year? What average price were the shares repurchased at? Compare this with the market prices of the shares.
(f). Review the capital disclosure note. What are the company’s objectives in managing its capital? How does it monitor its capital? What is included in capital for the company?

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