The Forzani Group Ltd. (FGL) is the largest sporting goods retailer in Canada. The company sel a vast assortment of sports related products, including athletic footwear, athletic apparel, and equipment required for performing a favourite sport. Its annual report for fiscal year 2009 includ the following: 11. Share Capital

(a) Authorized An unlimited number of Class A shares (no par value) An unlimited number of Preferred shares, issuable in series

(b) Issued Class A shares (in thousands) Balance, February 3, 2008 Shares issued upon employees exercising stock options Stock-based compensatich related to options exercised Shares repurchased via normal course issuer bid Balance, February 1, 2009 Number Consideration 32,970 157,105 192 2,384 636 (2,694) (12,964) 30,468 $147,161

(e) Normal Course Issuer Bid For the year ended February 1, 2009, 2,694,376 (2008 -1,802,900) Class A shares were repurchased pursuant to the Company's Norma Course Issuer Bid for a total expenditure of $44,027,000 (2008 - $33,331,000) or $16.34 (2008 - $18.49) per share. The consideration in excess of the stated value of $31,063,000 (2008-$24,898,000) was charged to retained earnings.

Required: 1. Why do you think FGL's board of directors decided to repurchase the company's shares? 2. Prepare the journal entry to record a summary of the repurchase transactions. 3. Compute the weighted-average issuance price per common share at February 1, 2009, and explain why FGL paid a much higher price for repurchasing its own shares.4. What impact will this transaction have on FGL's future dividend obligations?