Use the 2017 financial statements for Dollarama Inc. in Appendix A to answer the following questions: a.

Question:

Use the 2017 financial statements for Dollarama Inc. in Appendix A to answer the following questions:

a. In your own words, describe the share capital of Dollarama. Why do you think the company repurchased common shares in 2016 and 2017?

b. Based on the statement of financial position, does Dollarama appear to be in a financial position to pay out dividends? What about based on the statement of income? What amount of dividends did the company pay out?

c. Calculate Dollarama’s return on equity ratio for 2016 and 2017 and comment on your findings. (For the 2016 ratio, you can find the 2015 balances in the statement of changes in shareholders’ equity.)

d. Calculate Dollarama’s dividend payout ratio for 2017.

e. On January 30, 2017, Dollarama’s share price was $98.25. Calculate the price/earnings ratio as at that date.

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...

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