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Shareholder wealth calculation

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Shareholder wealth calculation

  • This topic has 1 reply, 2 voices, and was last updated 12 years ago by AvatarJohn Moffat.
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  • December 5, 2013 at 11:33 am #150611
    Avatarjemma242
    Member
    • Topics: 81
    • Replies: 96
    • ☆☆

    When we calculate the total shareholder return how do you know which method to use is best? and how many methods are there? ie the one below and ….dividend yield plus share price increase!!!

    also if we use dividend + increase in share price/ share price at the start, if there is a decrease in the share price is this method still appropriate as we can mention that the company isn’t meeting there objective?

    Hope that makes sense

    Thanks
    Jemma

    December 5, 2013 at 3:23 pm #150678
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54839
    • ☆☆☆☆☆

    The question will make it clear which method to use.

    There is no reason why the total shareholder return cannot be negative (if the share price falls), and yes – you could say that it was not meeting its objective,

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