Returns to Investors

  • Ruth A. Schmidt
  • Helen Wright


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)


Capital Structure Share Price Dividend Yield Investment Ratio Fund Ratio 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


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Copyright information

© Ruth A. Schmidt and Helen Wright 1996

Authors and Affiliations

  • Ruth A. Schmidt
  • Helen Wright

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