The consolidated statement of operations for Cineplex Inc. appears in Exhibit 11.13. The market price of Cineplex’s shares on December 30, 2016, was $51.22.

EXHIBIT 11.13 Excerpt from Cineplex Inc.’s 2016 Annual Report

13. Dividends payable

Cineplex has declared the following dividends during the years:

The dividends are paid on the last business day of the following month. Dividends are at the discretion of the Board of Directors of Cineplex. In January 2017, Cineplex declared a dividend of $8,575, or $0.1350 per share, payable in February 2017.

Required

a. Calculate Cineplex’s price/earnings ratio.

b. Calculate the dividend payout ratio for 2016.

c. Calculate the return on common shareholders’ equity for 2015 and 2016 and comment on your findings. (Total shareholders’ equity was $751,895 thousand at December 31, 2016; $772,497 thousand at December 31, 2015; and $731,849 thousand at December 31, 2014.)

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CINEPLEX INC. Consolidated Statements of Operations For the years ended December 31, 2016 and 2015 (expressed in thousands of Canadian dollars, except per share amounts) 2016 2015 Revenues $ 712,446 $ 711,107 Вох office Food service 418,445 423,920 Media 170,792 153,646 Other (note 20) 87,745 171,168 1,478,326 1,370,943 Expenses Film cost 389,602 379,103 Cost of food service 90,530 96,059 Depreciation and amortization 105,941 89,339 Loss on disposal of assets 3,236 1,570 Gain on acquisition of business (7,447) 2016 2015 Other costs (note 21) 759,930 655,389 Share of income of joint ventures (2,706) (3,556) Interest expense 18,816 22,443 Interest income (204) (186) Change in fair value of financial instrument (note 29) (29,076) 1,369,008 1,199,775 Income before income taxes 109,318 171,168 Provision for (recovery of) income taxes Current (note 7) 26,231 37,026 Deferred (note 7) 5,096 (107) 31,327 36,919 Net income $ 77,991 $ 134,249 Attributable to: Owners of Cineplex $ 79,713 $ 134,697 Non-controlling interests (1,722) (448) Net income $ 77,991 $ 134,249 Basic net income per share attributable to owners of Cineplex (note 22) 1.26 2.13 Diluted net income per share attributable to owners of Cineplex (note 22) 1.25 2.12 %24 %24