The Jean Coutu Group operates a network of franchised stores in Canada, located in the provinces of Québec, New Brunswick, and Ontario under the banners of PJC Jean Coutu, PJC Clinique, PJC Santé, and PJC Santé Beauté and employs more than 17,000 people. Its annual report for fiscal year 2010 included the following:

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1. Why do you think Jean Coutu'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, and explain why Jean Coutu paid a much higher price for repurchasing its own shares.
4. What impact will this transaction have on Jean Coutu's future dividend obligations?

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13. Capital Stock Changes that occurred in capital stock are presented as follows: Class A subordinate voting shares Outstanding shares, beginning of year Repurchased and cancelled Stock options exercised Outstanding shares, end of year Normal course issuer bid 2010 2009 Shares Shares (in millions) S (in millions) $ 118.6 618.1 130.9 715.4 - (12.3) (67.3) 0.3 2.7 118.9 650.8 118.6 648.1 In July 2008, The Company announced its intention to purchase for cancellation up to 12,311,000 of its outstanding Class A subordinate voting shares. All of these shares were purchased and cancelled during the fiscal year ended February 28, 2009. at an average price of $7.42 per share for a total consideration of $91.4 million including fees. An amount of $24.1 million representing the excess of the purchase price over the carrying value of the acquired shares was deducted from retained earnings. Purchases were made through the facilities of the Toronto Stack Exchange and in accordance with its requirements.