The following financial information (in millions except for per share amounts) is for two major corporations for the three fiscal years ended October 31 as follows: 

Instructions 

a. Calculate the earnings per share, price-earnings ratio, and payout ratio for the common shareholders in each company for each of the three years. Comment on whether their ratios have improved or deteriorated. 

b. Compare The Toronto-Dominion Bank’s ratios with The Bank of Nova Scotia’s.

Why is the presentation of fully diluted earnings per share required under IFRS, given that it is a hypothetical number?  

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The Toronto-Dominion Bank Weighted average number of common shares Profit for the year Preferred dividends Common dividends Market price per share (October 31) The Bank of Nova Scotia Weighted average number of common shares Profit for the year Preferred dividends Common dividends Market price per share (October 31) 2020 1,807.3 $ 11,895 $ 267 $ 5,614 $ 58.78 2020 1,212.0 $ 6,778 $ 196 $ 4,363 $ 55.35 2019 1,824.2 $11,686 $ 252 $ 5,262 $ 75.21 2019 1,222.0 $ 8,390 $ 182 $ 4,260 $75.54 2018 1,835.4 $11,334 $ 214 $ 4,786 $73.03 2018 1,213.0 $8,548 $ 187 $ 3,985 $70.65