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)


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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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