Write 8 page essay on the topic Financial Management Master.Download file to see previous pages... It also has a secondary listing on the Irish Stock Exchange with the name TESCO PLC. Its market capit

Write 8 page essay on the topic Financial Management Master.

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.