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Returns to Investors

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Abstract

When you have finished working through this chapter you should be able to

  • Distinguish between share finance and long-term loan finance and discuss the advantages and disadvantages of the two forms of finance

  • Assess the performance of an investment in shares, using the ratios earnings per share (EPS), dividend PER SHARE (DPS), DIVIDEND COVER, DIVIDEND yield and the price earnings ratio

  • In the context of a simple example, calculate GEARING and show the impact of gearing on returns to shareholders by calculating return on shareholders’ FUNDS (ROSF)

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© 1996 Ruth A. Schmidt and Helen Wright

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Schmidt, R.A., Wright, H. (1996). Returns to Investors. In: Financial Aspects of Marketing. Palgrave, London. https://doi.org/10.1007/978-1-349-25020-2_9

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