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

Financial Management Master - Research Paper ExampleIt 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 one million million million 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 Tescos financial years, which run for 52 or 53 hebdomad periods to late February. The figures in the table below include 52 weeks/12 months of turn over for both sides of the business as this provides the best comparative.Total Shareholder afford (TSR) shows the return on investment a assignholder receives over a specified time frame and takes into consideration the share price appreciation/ wear and tear 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 coming into court as on the close of every financial year as well as in the beginning of the year for the financial years from 2004-05 money box 2007-08.TSR synopsis 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 TESCODIVIDEND IN PENCE/SHAREPARTCULARS OF SHARE PRICES AS ON PARTICULAR DATE - TESCOSHARE PRICE TSR FOR TESCOInterim - 10/10/073.20As on 23/02/2008 - End400Final - 23/04/087.70As on 24/02/2007 - number 1446Total10.90 disparity in prices- 46(-46+10.9)/ 446* snow= 7.87%Interim - 11/10/062.81As on 24/02/2007 - End446Final - 25/04/076.83As on 25/02/2006 - Beginning335Total9.64 distinction in prices111(111+9.64)/335*100= 36.01%Interim - 28/09/052.53As on 25/02/2006 - End335Final - 03/05/066.10As on 26/02/2005 - Beginning308Total8.63Difference in prices 27(27+8.63)/308*100= 11.57%Interim - 29/09/042.29As on 26/02/2005 - End308Final - 20/04/055.27As on 27/02/2004 - Beginning258Total7.56Difference 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 mercurial 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) Mark et Value Added(MVA)A calculation that shows the difference between the