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 http://corp.canadiantire.ca, click on “Investors,” and then click on “Annual Disclosures” via “Financial Reporting,” and select the “2020 Report to Shareholders.” (Note: If you are not able to find the annual report on the Canadian Tire site—if, for example, Canadian Tire’s shares are no longer publicly traded, then it may remove previously published annual reports and financial statements from its website—it is always available on SEDAR. See part [g] of this problem for instructions on how to use SEDAR.)

a. Search within the document for “Company and industry overview.” What are Canadian Tire’s distinct sources of revenue? How might this information help you with your investment decision?

b. Search within the document for 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. Search within the document for “Historical Performance Highlights.” What were the cash dividends per share declared in 2020 and 2019? How might this information be helpful with your investment decision?  

d. Go to page 68 of the 2020 report to shareholders, “Consolidated Statements of Income.” What was Canadian Tire’s basic earnings per share at January 2, 2021? 

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 Information” and scroll down to “Historical Stock Quote” for the security “CTC.A.” What was Canadian Tire’s share price at December 31, 2020? 

f. Calculate Canadian Tire’s price-earnings ratio at January 2, 2021. 

g. Go to www.sedar.com and click on “English.” Click on “Issuer Profiles.” Under “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 Company’s Documents.” What types of documents are provided on this site? 

i. Go to https://ca.investing.com and in the search field, type in Canadian Tire’s stock symbol “CTC,” press enter to access the Canadian Tire Corporation, Limited general information. Click on “Ratios” via “Financials.” 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.