Using the consolidated statement of earnings for Cineplex Inc. to the financial statements in Exhibit 11-11, calculate the ratios below. The market price of Cineplex€™s shares on December 31, 2013, was $44.06.

Required:
a. Calculate Cineplex€™s price/earnings ratio.
b. Calculate the dividend payout ratio for 2013.
c. Calculate the return on common shareholders€™ equity for 2012 and 2013 and comment on your findings. (Total shareholders€™ equity was $748,272 thousand at December 31, 2103; $747,314 thousand at December 31, 2012; and $621,609 at December 31, 2011.)

EXHIBIT 11-11 EXCERPT FROM CINEPLEX INC. 2013 ANNUAL REPORT Consolidated statements of operations For the years ended December 31, 2013 and 2012 (expressed in thousands of Canadian dolars, except per share amounts) 2013 2012 (note 2) Revenues Box office Concessions Other 665,306 350,353 155,608 1,171,267 638,296 329,332 124,873 1,092,501 Expenses Film cost Cost of concessions Depreciation and amortization Loss (gain) on disposal of assets (Gain) on acquisition of business (note 3 d) Other costs (note 23) Share of income of joint ventures Interest expense Interest income 331,281 68,398 62,163 (-2,352) (-24,752) 495,537 (-3,263) 12,585 (-205) 939,392 153,109 346,373 74,693 70,890 4,372 551,819 (-3,850) 10,743 (-307) 1,054,733 116,534 Income before income taxes Provision for income taxes Current (note 10) Deferred (note 10) 3,608 29,369 32,977 83,5517 $1.3:3 $1.32 31,436 1,189 32,625 120,484 $ 1.98 $1.97 Net Income Basic net income per share (note 24) Diluted net income per share (note 24) EXHBIT 11-11 EXCERPT FROM CINEPLEX INC. 2013 ANNUAL REPORT (continued) 16. Dividends payable Cineplex has declared the following dividends during the years: 2013 2012 Amount per share $0.1125 0.1125 0.1125 0.1125 0.1200 0.1200 0.1200 0.1200 0.1200 0.1200 0.1200 0.1200 Amount per share $0.1075 0.1075 0.1075 0.1075 0.1125 0.1125 0.1125 0.1125 0.1125 0.1125 0.1125 0.1125 Record date Amount January February March April May June July August $7,063 7,065 7,070 7,070 7,541 7,542 7,542 7,542 7,542 7,542 7,548 7,552 Amount $6,279 6,303 6,558 6,561 6,945 6,955 6,974 6,979 6,982 6,983 6,990 7,063 October November December