Premium Essay

With Reference to the Data in Appendix B, Figure 3, Do You Think the Shareholders of Scott Electronics Plc Will Be Pleased with the Company’s Financial Performance in 2011? You Are Encouraged to Use Calculations to Support Your Answer. (16 Mark)

In:

Submitted By farahkhann
Words 758
Pages 4
With reference to the data in Appendix B, Figure 3, do you think the shareholders of Scott Electronics plc will be pleased with the company’s financial performance in 2011? You are encouraged to use calculations to support your answer. (16 mark)

David Perryman, the Head of New Product Development, was set objectives by the Board of Directors which was to devise a project to increase the profitability of Scott Electronics plc and to provide a greater dividend to shareholders. The shareholders may or may not be pleased with the company’s financial performance in 2011.
One reason to suggest that the shareholders of Scott Electronics plc will be pleased with the company’s financial performance in 2011 could be due to the increase in total dividends in 2011. As shown in Appendix B, Figure 3, the total dividends have risen from £1m (2010) to £2m. In 2010 the dividends per share would be 1/ 5 which would equal 20 pence per share. In 2011 the dividends per share would be 2/5 which would equal 40 pence per share. In 2010 the Dividend yield would be (0.2/1.5x 100 =) 13.3%. However, in 2011 the Dividend yield would be (0.4/2.0 x 100 =) 20.0%. The dividend yield is a rate of return on the value of the investment. Both dividends per share and dividend yield have improved. This would encourage the current shareholders to retain their shares, and to continue with having support and commitment behind the PLC. It will also help with the overall look of having shares in the Scott Electronics plc. This would eventually make the shareholders pleased with the performance due to an increase in dividends. However, the industry average for dividend yield in 2011 is 25%. Now this is 5% above Scott electronics plc’s dividend yield, this may cause issues amongst some shareholders as they may not be happy with it being under the average. This could result in the existing shareholders

Similar Documents

Premium Essay

Henry Hoovers

...With Reference to the Data in Appendix B, Figure 3, Do You Think the Shareholders of Scott Electronics Plc Will Be Pleased with the Company’s Financial Performance in 2011? You Are Encouraged to Use Calculations to Support Your Answer. (16 Mark) With reference to the data in Appendix B, Figure 3, do you think the shareholders of Scott Electronics plc will be pleased with the company’s financial performance in 2011? You are encouraged to use calculations to support your answer. (16 mark) David Perryman, the Head of New Product Development, was set objectives by the Board of Directors which was to devise a project to increase the profitability of Scott Electronics plc and to provide a greater dividend to shareholders. The shareholders may or may not be pleased with the company’s financial performance in 2011. One reason to suggest that the shareholders of Scott Electronics plc will be pleased with the company’s financial performance in 2011 could be due to the increase in total dividends in 2011. As shown in Appendix B, Figure 3, the total dividends have risen from £1m (2010) to £2m. In 2010 the dividends per share would be 1/ 5 which would equal 20 pence per share. In 2011 the dividends per share would be 2/5 which would equal 40 pence per share. In 2010 the Dividend yield would be (0.2/1.5x 100 =) 13.3%. However, in 2011 the Dividend yield would be (0.4/2.0 x 100 =) 20.0%. The dividend yield is a rate of return on the value of the investment. Both dividends per share and...

Words: 388 - Pages: 2

Premium Essay

Mr Ahsan Aslam

...Financial Accounting for Decision Makers Visit the Financial Accounting for Decision Makers, sixth edition Companion Website at www.pearsoned.co.uk/atrillmclaney to find valuable student learning material including: G G G G G Self assessment questions to test your learning A study guide to aid self-learning Revision questions and exercises to help you check your understanding Extensive links to valuable resources on the web Comments on case studies to aid interpretative and analytical skills   We work with leading authors to develop the strongest educational materials in accounting, bringing cutting-edge thinking and best learning practice to a global market. Under a range of well-known imprints, including Financial Times Prentice Hall, we craft high-quality print and electronic publications which help readers to understand and apply their content, whether studying or at work. To find out more about the complete range of our publishing, please visit us on the World Wide Web at: www.pearsoned.co.uk   6th Edition Financial Accounting for Decision Makers Peter Atrill and Eddie McLaney   Pearson Education Limited Edinburgh Gate Harlow Essex CM20 2JE England and Associated Companies throughout the world Visit us on the World Wide Web at: www.pearsoned.co.uk Second edition published 1999 by Prentice Hall Europe Third edition published 2002 by Pearson Education Limited Fourth edition 2005 Fifth edition 2008 Sixth edition 2011 © Prentice Hall Europe...

Words: 211090 - Pages: 845

Premium Essay

Strategy Management

...author-developed case exercises for all 12 cases in this edition that require students to work through answers to assignment questions for each case. These exercises have multiple components and can include: calculating assorted financial ratios to assess a company’s financial performance and balance sheet strength, identifying a company’s strategy, doing five-forces and driving-forces analysis, doing a SWOT analysis, and recommending actions to improve company performance. The content of these case exercises is tailored to match the circumstances presented in each case, calling upon students to do whatever strategic thinking and strategic analysis is called for to arrive at a pragmatic, analysis-based action recommendation for improving company performance. eBook Connect Plus includes a media-rich eBook that allows you to share your notes with your students. Your students can insert and review their own notes, highlight the text, search for specific information, and interact with media resources. Using an eBook with Connect Plus gives your students a complete digital solution that allows them to access their materials from any computer. Tegrity Make your classes available anytime, anywhere. With simple, one-click recording, students can search for a word or phrase and be taken to the exact place in your lecture that they need to review. EASY TO USE Learning Management System Integration McGraw-Hill Campus is a...

Words: 219639 - Pages: 879

Premium Essay

Health Care Finance

...Finance Course: Health Care Finance Readings MBAHC−4 California College for Health Sciences MBA Health Care Program McGraw-Hill/Irwin abc McGraw−Hill Primis ISBN: 0−390−55313−1 Text: Advanced Financial Accounting, Sixth Edition Baker−Lembke−King Harvard Business School Accounting Cases Corporate Finance, Seventh Edition Ross−Westerfield−Jaffe Harvard Business Review General Management Articles Harvard Business School Finance Cases This book was printed on recycled paper. Finance http://www.mhhe.com/primis/online/ Copyright ©2005 by The McGraw−Hill Companies, Inc. All rights reserved. Printed in the United States of America. Except as permitted under the United States Copyright Act of 1976, no part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without prior written permission of the publisher. This McGraw−Hill Primis text may include materials submitted to McGraw−Hill for publication by the instructor of this course. The instructor is solely responsible for the editorial content of such materials. 111 FINAGEN ISBN: 0−390−55313−1 Finance Contents Ross−Westerfield−Jaffe • Corporate Finance, Seventh Edition I. Overview 1 1 20 34 34 69 97 129 151 151 192 192 214 214 248 1. Introduction to Corporate Finance 2. Accounting Statements and Cash Flow II. Value and Capital Budgeting 4. Net Present Value 5. How to Value Bonds and Stocks 7. Net Present Value and...

Words: 226746 - Pages: 907

Free Essay

Thought on Business

...Copyright (D 1999 by William H. Gates, III All rights reserved. Warner Books, Inc, 1271 Avenue of the Americas, New York, NY 10020 Visit our Web site at www.warnerbooks.com 0 A Time Warner Company Printed in the United States of America First Printing: March 1999 10 9 8 7 6 5 4 3 2 1 ISBN: 0-446-52568-5 LC: 99-60040 Text design by Stanley S. Drate lFolio Graphics Co Inc Except as file:///C|/Documents%20and%20Settings/Admini...SINESS%20AT%20THE%20SPEED%20OF%20THOUGHT.TXT (1 of 392)12/28/2005 5:28:51 PM file:///C|/Documents%20and%20Settings/Administrator/Deskto...0BILL%20-%20BUSINESS%20AT%20THE%20SPEED%20OF%20THOUGHT.TXT indicated, artwork is by Gary Carter, Mary Feil-jacobs, Kevin Feldhausen, Michael Moore, and Steve Winard. ACKNOWLEDGMENTS I first want to thank my collaborator, Collins Hemingway, for his help in synthesizing and developing the material in this book and for his overall management of this project. I want to thank four CEOs who read a late draft of the manuscript and offered valuable thoughts on how to make it more meaningful for business leaders: Paul O'Neill, Alcoa; Ivan Seidenberg, Bell Atlantic; Tony Nicely, GEICO Insurance; and Ralph Larsen, Johnson & Johnson. Details on the use of technology by business and public agencies came from worldwide travel and research by Collins and by Jane Glasser. Barbara Leavitt, Evelyn Vasen,and Ken Linarelli...

Words: 146627 - Pages: 587

Premium Essay

Business Management

...Google It” Age CONFERENCE PROCEEDING VOL. 5, NO.1 ISSN: 2330-1236 Table of Contents Authors Paper Title Page Maryam Abdu Investigating Capital Structure Decisions and Its Effect on the Nigerian Capital Market 1 Norsuhaily Abu Bakar Rahimah Embong Ibrahim Mamat Ruzilawati Abu Bakar Idris Abd. Hamid Holistically Integraded Curriculum: Implications for Personality Development 16 Sandra Ajaps Geography Education in the Google age: A Case Study of Nsukka Local Government Area of Nigeria 30 Helen Afang Andow Impact of Banking Reforms on Service Delivery in the Nigerian Banking Sector 45 Billy Batlegang Green IT Curriculum: A Mechanism For Sustainable Development 59 Rozeta Biçaku-Çekrezi Student Perception of Classroom Management and Productive Techniques in Teaching 74 Thomas J.P.Brady Developing Digital Literacy in Teachers and Students 91 Lorenzo Cherubini Ontario (Canada) Education Provincial Policy: Aboriginal Student Learning 101 Jennifer Dahmen Natascha Compes Just Google It?! But at What Price? Teaching Pro-Environmental Behaviour for Smart and Energy-Efficient Use of Information and Communication Technologies 119 Marion Engin Senem Donanci Using iPads in a dialogic classroom: Mutually exclusive or naturally compatible? 132 Nahed Ghazzoul Teaching and Learning in the Age of 'Just Google it' 149 Saba A. Gheni Falah H. Hussein Teaching Against Culture of Terrorism in the Middle East 162 Jessica Gordon Bonnie Boaz Integrating Digital Media...

Words: 236613 - Pages: 947

Premium Essay

Managing Information Technology (7th Edition)

...Company, Inc.: Selection of an Information Technology Platform CASE STUDY I-2 VoIP2.biz, Inc.: Deciding on the Next Steps for a VoIP Supplier CASE STUDY I-3 The VoIP Adoption at Butler University CASE STUDY I-4 Supporting Mobile Health Clinics: The Children’s Health Fund of New York City CASE STUDY I-5 Data Governance at InsuraCorp CASE STUDY I-6 H.H. Gregg’s Appliances, Inc.: Deciding on a New Information Technology Platform CASE STUDY I-7 Midsouth Chamber of Commerce (B): Cleaning Up an Information Systems Debacle CASE STUDY II-1 Vendor-Managed Inventory at NIBCO CASE STUDY II-2 Real-Time Business Intelligence at Continental Airlines CASE STUDY II-3 Norfolk Southern Railway: The Business Intelligence Journey CASE STUDY II-4 Mining Data to Increase State Tax Revenues in California CASE STUDY II-5 The Cliptomania™ Web Store: An E-Tailing Start-up Survival Story CASE STUDY II-6 Rock Island Chocolate Company, Inc.: Building a Social Networking Strategy CASE STUDY III-1 Managing a Systems Development Project at Consumer and Industrial Products, Inc. CASE STUDY III-2 A Make-or-Buy Decision at Baxter Manufacturing Company CASE STUDY III-3 ERP Purchase Decision at Benton Manufacturing Company, Inc. CASE STUDY III-4 The Kuali Financial System: An Open-Source Project CASE STUDY III-5 NIBCO’s “Big Bang”: An SAP Implementation CASE STUDY III-6 BAT Taiwan: Implementing SAP for a Strategic...

Words: 239887 - Pages: 960

Premium Essay

Marketing Real People, Real Choices

...c MARKETING 7E People real Choices This page intentionally left blank MARKETING 7E People real Choices Michael R. SAINT JOSEPH S SOLOMON ’ U OLLINS NIVERSITY Greg W. MARSHALL R C STUART OLLEGE Elnora W. THE UNIVERSITY OF SOUTH CAROLINA UPSTATE Prentice Hall Boston Columbus Indianapolis New York San Francisco Upper Saddle River Amsterdam Cape Town Dubai London Madrid Milan Munich Paris Montreal Toronto Delhi Mexico City Sao Paulo Sydney Hong Kong Seoul Singapore Taipei Tokyo Editorial Director: Sally Yagan Editor in Chief: Eric Svendsen Acquisitions Editor: Melissa Sabella Director of Editorial Services: Ashley Santora Editorial Project Manager: Kierra Bloom Editorial Assistant: Elisabeth Scarpa Director of Marketing: Patrice Lumumba Jones Senior Marketing Manager: Anne Fahlgren Marketing Assistant: Melinda Jensen Senior Managing Editor: Judy Leale Project Manager: Becca Richter Senior Operations Supervisor: Arnold Vila Creative Director: Jon Christiana Senior Art Director: Blair Brown Text and Cover Designer: Blair Brown Media Project Manager, Production: Lisa Rinaldi Media Project Manager, Editorial: Denise Vaughn Full-Service Project Management: S4Carlisle Publishing Services Composition: S4Carlisle Publishing Services Printer/Bindery: Courier/Kendalville Cover Printer: Courier/Kendalville Text Font: Palatino Credits and acknowledgments borrowed from other sources and reproduced, with permission, in this textbook...

Words: 227255 - Pages: 910

Premium Essay

Projects

...ftoc.indd 16 10/10/08 5:17:22 PM SEVENTH EDITION PROJECT MANAGEMENT A Managerial Approach ffirs.indd 1 10/10/08 5:16:30 PM SEVENTH EDITION PROJECT MANAGEMENT A Managerial Approach Jack R. Meredith Broyhill Distinguished Scholar and Chair in Operations Wake Forest University Samuel J. Mantel, Jr. Joseph S. Stern Professor Emeritus of Operations Management University of Cincinnati John Wiley & Sons, Inc. ffirs.indd 3 10/10/08 5:16:35 PM ftoc.indd 16 10/10/08 5:17:22 PM Dedication To Avery and Mitchell, from “papajack.” J. R. M. To Maggie and Patty for their help, support, and affection. S. J. M. VICE PRESIDENT & EXECUTIVE PUBLISHER  Don Fowley EXECUTIVE EDITOR  Beth Golub ASSOCIATE EDITOR  Jen Devine MARKETING MANAGER  Carly DeCandia Design Director  Harry Nolan SENIOR DESIGNER  Kevin Murphy SENIOR PRODUCTION EDITOR  Patricia McFadden SENIOR Media editor  Lauren Sapira PRODUCTION MANAGEMENT SERVICES  Ingrao Associates This book was set in by GGS Book Services PMG and printed and bound by RRD/Willard. The cover was printed by RRD/Willard. This book is printed on acid free paper.  Copyright © 2009 John Wiley & Sons, Inc. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning or otherwise, except as permitted under Sections 107 or 108 of the 1976...

Words: 181757 - Pages: 728

Premium Essay

Project Mgt

...EDITION PROJECT MANAGEMENT A Managerial Approach Jack R. Meredith Broyhill Distinguished Scholar and Chair in Operations Wake Forest University Samuel J. Mantel, Jr. Joseph S. Stern Professor Emeritus of Operations Management University of Cincinnati John Wiley & Sons, Inc. DeDication To Avery and Mitchell, from “papajack.” J. R. M. To Maggie and Patty for their help, support, and affection. S. J. M. VICE PRESIDENT & EXECUTIVE PUBLISHER Don Fowley EXECUTIVE EDITOR Beth Golub ASSOCIATE EDITOR Jen Devine MARKETING MANAGER Carly DeCandia DESIGN DIRECTOR Harry Nolan SENIOR DESIGNER Kevin Murphy SENIOR PRODUCTION EDITOR Patricia McFadden SENIOR MEDIA EDITOR Lauren Sapira PRODUCTION MANAGEMENT SERVICES Ingrao Associates This book was set in by GGS Book Services PMG and printed and bound by RRD/Willard. The cover was printed by RRD/Willard. This book is printed on acid free paper.  Copyright © 2009 John Wiley & Sons, Inc. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning or otherwise, except as permitted under Sections 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc. 222 Rosewood Drive, Danvers, MA 01923, website www.copyright.com. Requests to...

Words: 178405 - Pages: 714