Potash Corporation of Saskatchewan Inc., known as PotashCorp, is the world's largest fertilizer enterprise by capacity and a leading supplier to three distinct market categories: agriculture, animal nutrition, and industrial chemicals. PotashCorp completed a share repurchase plan in 2014. Financial information for PotashCorp for the years ended December 31, 2014 and 2013, follows (in millions of U.S. dollars, except per share data):

Instructions
(a) Explain the different effects that a cash dividend, stock dividend, and stock split would have on PotashCorp's assets, liabilities, shareholders' equity, and the number of shares outstanding.
(b) What is the likely reason that PotashCorp has repurchased shares over the past two fiscal years?
(c) During the period of August 2013 and June 2014, Potash Corpinstituted a share reacquisition plan. The company repurchased a total of 43.3 million shares over this period of time. In 2012, the market price per share was $40.48, in 2013 it was $35.02, and in 2014 it was $41.07. In 2012, the dividend declared per share was $0.70; in 2013, $1.33; and in 2014, $1.40. Comment on the impact the reacquisition may have had on the market price and dividends per share.
(d) Based on the following excerpt from the PotashCorp notes to the financial statements for 2014 on the share reacquisition, did the company pay more than the average per share amount or less than the average per share amount? Explain.

(e) Calculate the return on shareholders' equity, earnings per share, and payout ratio for the shareholders for 2014 and 2013. Comment on the company's profitability. Shareholders' equity at December 31, 2012, was $9,912.

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Profit for the year Shareholders' equity at December 31 Cash dividends declared during the year Number of shares outstanding (at year end) 2014 2013 $1,536 $1,785 $8,792 $9,628 $1,164 $1,146 830.2 856.1 Weighted average number of shares outstanding 838.1 864.6 2014 2013 Common shares repurchased for cancellation 29,200,892 14,145,100 $ 35.31 $ 31.46 Average price per share Repurchase resulted in a reduction of Share capital Contributed surplus Retained earnings 53 $ 25 82 338 445 976 Total cost $ 1,031