RA15.2

Bank of Montreal and Royal Bank of Canada

The Bank of Montreal and Royal Bank of Canada financial statements for their years ended October 31, 2017, can be found on SEDAR (www.sedar.com).

Instructions

a. What is the average carrying amount of common shares? with market prices. What stock exchanges do these banks trade on?

b. What is the authorized share capital of the company?

c. Comment on how each company presents its shareholders' equity on the balance sheet and the statement of changes in equity. Comment on the presentation of the various items on statement and the formats used.

d. Describe the changes (number of shares and price) in the company's common share accounts over the past three years. What types of activities are contributing to the changes?

e. What amounts of cash dividends per share were declared by each company during the fiscal 2017 year? What was the total dollar effect of the cash dividends on the company's shareholders' equity?

f. What is the company's rate of return on common shareholders' equity for the 2017 fiscal year? Which company has the higher return on its common shareholders' equity?