Magna International Inc. The Magna International Inc. financial statements for the year ended December 31, 2009, can be found on SEDAR (www.sedar.com).
Instructions
(a). The company has many different types of shares authorized, issued, and/or outstanding at the end of the 2009 year end. Prepare a chart that shows the following: name of share class, number of authorized shares, number of issued and outstanding shares, number of votes per share, and rights in terms of dividends.
(b). Why would a company structure its capital in this way? Is there a need for the various classes of shares? Who owns the multiple voting shares? (Hint: Look at the Annual Information Form on SEDAR [www.sedar.com].)
(c). Calculate the average book value per share for the 2008 and 2009 year ends. Compare these values with the closing share price at each year end. (Hint: Look at the Annual Information Form.)
(d). Describe the various types of share transactions that occurred during 2007 to 2009.
(e). How much was paid in dividends during 2009, and what kinds of dividends were paid?
(f). For 2008 and 2009, calculate the rate of return on shareholders’ equity, the payout ratio, and the price earnings ratio based on the closing share price for the year end. Comment on the amounts calculated.
(g). Examine the Capital Disclosure note. What are the company’s objectives in managing its capital? How does it measure its capital and what is included in capital?