LITE f. Dollarama's payout ratio for 2018 was reported in the chapter in Illustration 14.24. Calculate its payout ratio for 2017. Explain what caused the difference between the two years. $1.0 quis d. Bas sta sha Interpreting Financial Statements BYP14.2 Loblaw Companies Limited is Canada's food and pharmacy leader and the nation's largest retailer. The company operates stores such as Real Canadian Superstore and Shoppers Drug Mart in communities rea sha cha Dollarama ny's website ts to answer across Canada. In 2017, Loblaw renewed its application to repurchase up to 21 million more common shares after 15.5 million and 10.3 mil- lion were repurchased and cancelled in 2017 and 2016, respectively. Financial information for Loblaw for the years ended December 31, 2017, and 2016 follows (in millions of dollars except per share data): 2017 2016 -8:(1) stock income, or Profit for the year Shareholders' equity at December 31 Dividends declared to common shareholders Number of common shares outstanding Weighted average number of common shares outstanding $ 1,526 $13,052 $ 421 385.5 $ 990 $13,028 $ 416 399.7 or 2017? If s? 393.8 405.1 in Illustra- plain what 2018 and ounts and 2017. The anuary 27, re the year- n in 2018? Explain le chapter 7. Explain Instructions a. Explain the different effects that a cash dividend, stock dividend, and stock split would have on Loblaw's assets, liabilities, share- holders' equity, and the number of shares outstanding. b. What is the likely reason that Loblaw has repurchased its com- mon shares? c. During the fiscal periods ended December 31, 2016, and 2017, Loblaw repurchased and cancelled a total of 25,820,827 common shares. In 2015, the common share market price per share was $65.34; in 2016, it was $70.84; and in 2017, it was $68.22. In 2015, the dividend declared per common share was $0.995; in 2016, it was $1.03; and in 2017, it was $1.07. Comment on the impact the reac- quisition may have had on the market price and dividends per share. d. Based on the following excerpt from the notes to the financial statements of Loblaw (in millions of dollars except common share data for the year ended December 31, 2017, on the share reacquisition, did the company pay more than the average per share amount or less than the average per share amount to repur- chase the common shares in 2017 and 2016? Explain. pharmacy tores such nmunities