Use the 2014 financial statements for Danier Leather Inc. in Appendix A to answer the following questions:
Question:
Use the 2014 financial statements for Danier Leather Inc. in Appendix A to answer the following questions:
a. In your own words describe the share capital of Danier. Why do you think the company has the share structure that it does?
b. Based on the statement of financial position, does Danier 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. Danier calculates its EPS using both the multiple voting shares and the subordinated voting shares. Do you agree with this method of calculation? Why or why not?
d. Calculate Danier’s return on equity ratio for 2014 and 2013 and comment on your findings. (For the 2013 ratio, you can find the 2012 balances in the statement of changes in shareholders’ equity.)
e. Calculate Danier’s dividend payout ratio for 2014.
f. On June 29, 2014, Danier’s share price was $9.41. Calculate the price/earnings ratio as at that date.
Financial StatementsFinancial 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...
Step by Step Answer:
a Danier Leather has four classes of shares authorized multiple voting shares subordinate voting shares Class A preferred ...View the full answer
Understanding Financial Accounting
ISBN: 978-1118849385
1st Canadian Edition
Authors: Christopher Burnley, Robert Hoskin, Maureen Fizzell, Donald
