What are 'shareholder ratios' and how do you work them out?

Shareholder ratios are measures used to assess the level of return received by the shareholders of a company. There are two main meaures: dividend per share and divident yield.  

Dividend per share = a ratio to show how much dividends is paid to shareholders per share. It is expressed in the formula: total dividends paid ÷ number of shares issued. The result is expressed in a price for example £0.15 dividend per share. 

Divident yield = a ratio that compares the dividend per share with the current market price of the share. It is expressed in the formula: (dividend per share ÷ current share price) x 100. The result is expressed in a percentage which allows shareholders to compare their investment choice with other investment options such as investment funds. 

Related Business Studies A Level answers

All answers ▸

What is profit and loss? (Including worked question)


Describe each of the 4 elements of Tuckmans (1965) effective team development model.


Analyse three benefi ts of Boojum Limited operating as a private limited company. (10)


Assess two factors that would affect demand for a 'staycation' in the UK (8 marks)


We're here to help

contact us iconContact usWhatsapp logoMessage us on Whatsapptelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

© MyTutorWeb Ltd 2013–2024

Terms & Conditions|Privacy Policy