The following financial information (in millions except for market price per share) is for two major corporations for the two fiscal years ended December 31:

Suncor does not have preferred shares issued. Imperial Oil issued preferred shares in 2009.

Instructions

a. Calculate earnings per share and the price-earnings and dividend payout ratios for each company for 2017 and 2016. Comment on whether their ratios have improved or deteriorated.

b. Compare Imperial Oil?s ratios with Suncor?s.

Taking It Further

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

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Imperial Oil Limited Weighted average number of common shares Profit Dividends-common shareholders Market price per share (December 31) 2017 2016 843 848 $ 490 $ 531 $2,165 $ 500 $46.71 $39.23 Suncor Energy Inc. 2017 2016 Weighted average number of common shares 1,661 1,610 Profit $ 445 $4,458 $2,124 Dividend-common shareholders $1,877 Market price per share (December 31) $46.15 $43.90