Use the 2009 financial statements for H&M in Appendix A to answer the following questions:
a. What types of share capital does FI&M have?
b. How does the presentation of the shareholders’ equity section for H&M on the group balance sheet differ from the shareholders’ equity sections presented in this chapter?
c. What portion of earnings did H&M pay out as dividends in 2008 and 2009?
d. Calculate H&M’s ROE for 2009 and 2008 and comment on your findings. (For the 2008 ratio, you will need to use year-end equity instead of average).
e. On November 30, 2009, H&M’s share price was SEK 206.50. Calculate the price/ earnings ratio as at that date.
f. What was the book value and market value of H&M as at November 30, 2009? Comment on the difference, if any.