shareholder ratio, ratio limitations

shareholder ratio, ratio limitations - Shareholder ratios A...

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Shareholder ratios A prime concern of shareholders is their return on investment.  The returns from investing in shares of a  company come in two main forms: The payment of dividends out of profits The increase in the value of the shares (share price) compared with the price that the shareholder  originally paid for the shares Dividend per share One very straightforward shareholder ratio (though as we shall see – not a hugely helpful one) is dividend  per share. This shows the value  of the total dividend per issued share  for the financial year.   Quoted public  companies usually split the annual dividend into two payments – the “interim” (paid after six months  trading) and the “final” (paid at the end of the financial year). In these cases, it is necessary to add the two  dividend payments together. The formula for dividend per share is: To illustrate the calculation, let us assume that a firm paid out the following dividends 2009: £460,000 2008: £240,000 In both years, there were 500,000 £1 ordinary shares in issue which qualified to receive a 
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This note was uploaded on 03/18/2012 for the course ACCT 205 taught by Professor Christensen during the Spring '11 term at Boise State.

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shareholder ratio, ratio limitations - Shareholder ratios A...

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