Question 6

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 price):

		Le Chteau		Reitmans
Current assets		$116,724		$319,362
Total assets		168,490		542,083
Current liabilities		36,038		121,172
Total liabilities		108,136		160,915
Loss to common shareholders		(35,745)		(24,703)
Share price		$0.27		$3.96
Weighted average number of common shares		29,964		64,079

For each company, calculate the following values and ratios. Where available, industry averages are included in parentheses. (Round basic earnings per share to 2 decimal places, e.g. 5.25 and round all other amounts to 1 decimal places, e.g. 5.2 or 5.2%. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). Do not leave any answer field blank. Enter 0 for not applicable amounts.)

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)

Le Chateau:

Debt to total assets:_______% (the answer is NOT 0.428 or 42.8%)

Price-Earnings Ratio: ________ times. (the answer is NOT -0.23 times)

Reitmans:

Debt to total assets:_______% (the answer is NOT 7.3% or 0.073%)

Price-Earnings Ratio: ________ times. (the answer is NOT -10.42)

(I was given the wrong answer for the questions above from this website and would like some clarification)