Refer to the financial statements of Canadian Tire Corporation given in Appendix A of this book.
Required:
1. Identify the types of shares that Canadian Tire is authorized to issue, and their characteristics. Do all types of shares have the same voting rights? If not, explain why.
2. Did the company repurchase shares during 2012? If so, how many shares were repurchased? Reconstruct a summary journal entry to record the share repurchase transactions.
3. Does the company provide stock options to senior executives? If so, describe the plan that is currently in effect. How many stock options were granted in 2012, and how many were exercised during the same year? What was the compensation expense related to the stock option plan for 2012?
4. Identify all the cash flows related to issuance of shares, repurchase of shares, and payment of dividends during fiscal year 2012.
5. The company declared dividends on the different types of outstanding shares during 2012. How much cash did the company pay in 2012 in dividends? Why is this amount different from the dividends declared by the board of directors?
6. Has the company ever issued a stock dividend or declared a stock split? If so, describe the procedure.