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2013 is RM6.65; RM7.27 for the year 2014; RM6.85 for the year 2015. In addition, the final share price of Maxis for the year 2013 is RM7.27; RM6.85 for the year 2014; RM6.80 for the year 2015. Dividend yield is calculated by using total dividend paid divided by initial share price. According to the Appendix 2.2, the dividend paid by Maxis from 2013 to 2015 is 40cents, 32 cents, and 20 cents respectively.32Apply all these data that provided above into the total return formula: Total Return= !"#$% ’()(’*+’ ,$(’-+(#($% ./$0* ,0(1*+ (4(+$% ./$0* ,0(1*(+(#($% ./$0* ,0(1*− 1)For an example, apply the data from the year 2015 to calculate the total return for the year 2015 is Total Return = 89:.<:89=.>?+ (89=.>:89=.>?− 1), the total return for the year 2015 will be 2.1898%. According to the Appendix 2.3, calculation of total return of 2014 and 2013 is -1.3755% and 15.3383%. A comparison will be made between the total return of a company with market return and security market line in order to fully analyse the overall performance of company. This kind of analyse helps the investors in decision making and determine whether they can obtain profit from the investment. In this report, FTSE Bursa Malaysia Top 100 is used as a 31“Annual Report 2015”, Maxis Berhad, accessed on March 29th, 2016, , 162. 32“MAXIS Dividend Chart”, Malaysia Stock, accessed on 29thMarch, 2016,
9 proxy market in order to make a comparison. The formula of market return is final index price divided by initial index price and minus one. According to the Appendix 2.4, the data demonstrate that initial price index from 2013 to 2015 is 11218.49 for 2013, 12502.48 for 2014, 11776.58 for 2015; the final price index from 2013 to 2015 is 12589.38 for 2013, 11812.49 for 2014, 11470.57 for 2015.33Apply these data into this formula in order to calculate the market return: ࠵?࠵?࠵?࠵?࠵?࠵? ࠵?࠵?࠵?࠵?࠵?࠵? =࠵?࠵?࠵?࠵?࠵? ࠵?࠵?࠵?࠵?࠵? ࠵?࠵?࠵?࠵?࠵?࠵?࠵?࠵?࠵?࠵?࠵?࠵? ࠵?࠵?࠵?࠵?࠵? ࠵?࠵?࠵?࠵?࠵?− 1The calculation is made based on FTSE Bursa Malaysia Top 100 as the proxy market, the market return is -2.5985% for 2015, -5.5188% for 2014, 12.2199% for 2013 as shown in Appendix 2.5. Graph 1: 3 Years Trend of Return According to the graph above, the comparison is made between total return of Maxis and market return which is based on the data from FTSE Bursa Malaysia Top 100. The graph demonstrated that market return and total return of Maxis is dropping from 2013 to 2014. However, both return is arise from 2014 to 2015, and discovered that total return of Maxis is higher than the market return in the whole trend. Since total return of Maxis is higher than the market return, Maxis stock can be classified as one of the best stock to invest. 33“FTSE Bursa Malaysia Top 100”, Investing, accessed on 29th, 2016, -malaysia-top-100-historical-data -10.00%-5.00%0.00%5.00%10.00%15.00%20.00%201320142015Market ReturnMaxis Total Return
10 Since the closing rate of Malaysia Government 10-year Bond which is risk free rate total 3.86% based on Appendix 3.134, and beta of Maxis is 0.63 refer to Appendix 3.235.