In the "All About You" feature, we learned about investing in shares of a company. You have recently inherited $10,000 and you are considering investing in Canadian Tire Corporation, Limited's common shares and you want to learn more about the company.
Instructions
Go to Canadian Tire's website at corp.canadiantire.ca, click on "Investors," and then click on "Annual Reports."
(a) Go to page 11 of the 2011 annual report, "Business at a Glance." What are Canadian Tire's four main business lines? How might this information help you with your investment decision?
(b) Go to page 37 of the 2011 annual report, which shows the table of contents of the "Management's Discussion and Analysis" (MD&A). According to the table of contents, what information is included in Canadian Tire's MD&A? How might the MD&A help you with your investment decision?
(c) Go to page 43 of the 2011 annual report, "4.0 Historical Performance Highlights." What were the cash dividends per share declared in 2011 and 2010? How might this information be helpful with your investment decision?
(d) Go to page 84 of the 2011 annual report, "Consolidated Statements of Income." What was Canadian Tire's basic earnings per share at December 31, 2011?
(e) On the "Investors" page of Canadian Tire's website, click on "Shareholders." What information is provided in this section of Canadian Tire's website? Go to "Stock Info" and click on "Historical Price Lookup" for the security "CTC.A." What was Canadian Tire's share price at December 30, 2011?
(f) Calculate Canadian Tire's price-earnings ratio at December 31, 2011.
(g) Go to www.sedar.com and click on "English." Click on "Company Profiles." Under "Public Companies," click on "C" and then scroll down and click on "Canadian Tire Corporation, Limited." Which stock exchange is Canadian Tire listed on? What is Canadian Tire's stock symbol? Who are Canadian Tire's auditors?
(h) On the Canadian Tire page you found in part (g), click on "View This Public Company's Documents." What types of documents are provided on this site?
(i) Go to www.google.ca/finance and search for Canadian Tire by inputting Canadian Tire's stock symbol into the search field. Scroll down and click on "More ratios from Thomson Reuters." What is Canadian Tire's most recent price-earnings ratio? What is the most recent industry average price-earnings ratio? Comment on Canadian Tire's price-earnings ratio compared with the industry average.