Question: Selected financial data for a recent year for two clothing competitors, Le Chteau Inc. and Reitmans (Canada) Limited, are presented here (in thousands, except share
Selected financial data for a recent year for two clothing competitors, Le Château Inc. and Reitmans (Canada) Limited, are presented here (in thousands, except share price):
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Instructions
(a) For each company, calculate the following values and ratios. Where available, industry averages are included in parentheses.
1. Working capital (n/a)
2. Current ratio (1.8:1)
3. Debt to total assets (57%)
4. Basic earnings per share (n/a)
5. Price-earnings ratio (20.0 times)
(b) Compare the liquidity, solvency, and profitability of the two companies and their industry.
Current assets Total assets Current liabilities Total liabilities Loss to common shareholders Share price Le Chteau Reitmans $116,724$319,362 168,490 542,083 36,038 121,172 08,136 160,915 (35,745) (24,703) $o.27$3.96 Weighted average number of common shares29.964 64,079
Step by Step Solution
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a in thousands Le Chteau Reitmans 1 Work capital 116724 36038 80686 319362 121172 198190 2 Current r... View full answer
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