An investor purchased 500 shares in Glicks Stores Limited at the beginning of its financial year at R22.50 per share, paying 3% brokerage costs. The book value per share on that date was R10.60. During the course of the year, the company paid a dividend of R2.40. One year later, the company reported earnings per share of 470 cents. On that date the book value per share was reported as R13.80. The investor sold the shares for R30.70 each, paying 3% brokerage on the transaction.

Required: (a) Calculate the return which the shareholder earned for her investment in Glicks stores Ltd.

(b) Discuss the difference between return on equity, return on investment, and the return to the shareholder.

(c) If the investor had decided not to sell the shares at the end of the year, calculate her return.

(d) Comment on the riskiness of the investment in Glicks Stores Ltd based on the information provided.

(e) If the period had been eight months rather than one year, all other information remaining the same, calculate the return to the shareholder.