Hi tutor, I am not able to obtain the answer for share price gain or loss in question High K Co from the September/ December past paper. May you tell me how this answer is arrived at? Also, can you provide me the calculations for Total shareholder return in this question?
The share price at the end of 2013 was $3.89. At the end of 2014 it is $3.54. So it has fallen by $0.35. This is a % fall of 0.35/3.89 = 9.00%. It is the same arithmetic for the following years.
The total shareholder return is the dividend yield less the share price loss. So in 2014 is 5.30% – 9% = (3.70%)