Note 17 to the March 28, 2021, financial statements of Canada Goose Holdings Inc. is shown in
Question:
Note 17 to the March 28, 2021, financial statements of Canada Goose Holdings Inc. is shown in Exhibit 11.11. All dollar amounts are in thousands.
Required
a. Describe the differences between the multiple voting shares and subordinate voting shares with respect to the following:
i. Their ability to influence the selection of management and to influence company decision-making
ii. The amount and priority of expected dividends
b. If you owned 100,000 multiple voting shares at March 28, 2021, what proportion of total votes would you control? If you owned 100,000 subordinate voting shares, what proportion of total votes would you control?
c. Why would investors choose to purchase the multiple voting shares rather than the subordinate shares? Or vice versa?
d. Why might holders of multiple voting shares choose to convert their shareholdings into subordinate shares, as described under the heading “Issued”?
Step by Step Answer:
Understanding Financial Accounting
ISBN: 9781119715474
3rd Canadian Edition
Authors: Christopher D. Burnley