Financial Management Master Research Paper Example | Topics and Well Written Essays - 2000 words

Financial Management Master - Research Paper Example It also has a secondary listing on the Irish Stock Exchange with the name TESCO PLC. Its market capitalization (as on 11/5/2008) is 33.09 billion pound, revenue is 47.3 billion pound (2008), operating income is 2.97 billion pound(2008) and net income 2.13 billion pound (2008). All figures below are for the Tesco's financial years, which run for 52 or 53 week periods to late February. The figures in the table below include 52 weeks/12 months of turnover for both sides of the business as this provides the best comparative. Total Shareholder Return (TSR) shows the return on investment a shareholder receives over a specified time frame and takes into consideration the share price appreciation/depreciation and dividends received. The TSR is calculated by adding the dividend per share to the capital gain/loss and dividing this by the share price and is expressed as a percentage change over time. I have extracted the data for 4 years for Tesco and Sainsbury and have taken the dividend comprising of the interim and final dividend paid by Tesco along with the stock prices appearing as on the close of every financial year as well as in the beginning of the year for the financial years from 2004-05 till 2007-08. TSR ANALYSIS FOR TESCO : As it is quite clear from the calculat... racted the data for 4 years for Tesco and Sainsbury and have taken the dividend comprising of the interim and final dividend paid by Tesco along with the stock prices appearing as on the close of every financial year as well as in the beginning of the year for the financial years from 2004-05 till 2007-08. PARTCULARS OF DIVIDEND PAID BY TESCO DIVIDEND IN PENCE/SHARE PARTCULARS OF SHARE PRICES AS ON PARTICULAR DATE - TESCO SHARE PRICE TSR FOR TESCO Interim - 10/10/07 3.20 As on 23/02/2008 - End 400 Final - 23/04/08 7.70 As on 24/02/2007 - Beginning 446 Total 10.90 Difference in prices - 46 [(-46+10.9)/ 446]*100 = 7.87% Interim - 11/10/06 2.81 As on 24/02/2007 - End 446 Final - 25/04/07 6.83 As on 25/02/2006 - Beginning 335 Total 9.64 Difference in prices 111 [(111+9.64)/ 335]*100 = 36.01% Interim - 28/09/05 2.53 As on 25/02/2006 - End 335 Final - 03/05/06 6.10 As on 26/02/2005 - Beginning 308 Total 8.63 Difference in prices 27 [(27+8.63)/ 308]*100 = 11.57% Interim - 29/09/04 2.29 As on 26/02/2005 - End 308 Final - 20/04/05 5.27 As on 27/02/2004 - Beginning 258 Total 7.56 Difference in prices 50 [(50+7.56)/ 258]*100 = 22.31% TSR ANALYSIS FOR TESCO : As it is quite clear from the calculations that the Total Shareholder Return for the Company has been quite volatile in nature and has been variable for the four years period and the same was negative for the current financial year 2007-08. This is on account of the fluctuating share price although the dividend per share has been on a constant rising scale. Moreover the performance of the stock has been quite volatile for TESCO and for the current financial year 07-08, it showed a downward trend. (ii) Market Value Added(MVA) A calculation that shows the difference between the