Bonaventure Cabinets Ltd. is a small publicly traded company that prides itself on being one of the

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Bonaventure Cabinets Ltd. is a small publicly traded company that prides itself on being one of the few independent Canadian furniture makers listed on the TSX. It has an enviable record of profitability growth over the past 10 years. Bonaventure is known for its very conservative accounting policies and management style. Its shares trade at $40 per share and its earnings per share in the most recent fiscal year amounted to $3.40 per share. The annual dividend is $0.20 per share and has not changed in five years. The cash balance on the balance sheet has quadrupled over the past five years and represents 20% of total assets. The TSX 100 Index has a price/earnings ratio of 17. Comment on the management strategy described above.
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
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Financial Management for Decision Makers

ISBN: 978-0138011604

2nd Canadian edition

Authors: Peter Atrill, Paul Hurley

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