Access the Bombardier Inc. financial statements for the year ended December 31, 2014, which can be found on SEDAR (www.sedar.com).

Instructions

(a) The company has many different types of shares authorized, issued, and/or outstanding at the end of 2014. Prepare a chart that shows the following: name of share class, number of authorized shares, number of issued and outstanding shares, number of votes per share, and rights in terms of dividends.
(b) Why would a company structure its capital in this way? Is there a need for the various classes of shares?
(c) Calculate the book value per common share at December 31, 2014 and 2013. Compare these values with the closing share price at each year end. Comment briefly.
(d) For the common (Class A and B) shares, indicate whether the number of shares is increasing or decreasing and what caused the changes in them over the two-year period ended December 31, 2014.
(e) Indicate the amount of dividends declared in 2014. What amount of dividends were paid?
(f) For 2014 and 2013, calculate the rate of return on the common shareholders' equity of Bombardier's shareholders, the payout ratio, and the price earnings ratio based on the year-end closing share price. Comment on the amounts calculated.
(g) Examine the Capital Management note. What are the company's strategy and objectives in managing its capital? How does it manage its capital, and what does it include in its definition of capital?