Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Below is an excerpt from Commonwealth Bank's annual report for the year 1 July 2019 to 30 June 2020. Total shareholder return (%) 151 Return

image text in transcribed

Below is an excerpt from Commonwealth Bank's annual report for the year 1 July 2019 to 30 June 2020. Total shareholder return (%) 151 Return on equity Cash, continuing operations (%) Earnings per share Cash, continuing operations (cents) 13.1 12.1 10.3 491.5 465.5 412.5 54 8 (11) (32) (24) FY18 FY19 FY20 FY18 FY19 FY20 1 5yr 10yr CBA Peer average (ex. CBA) Total shareholder return (TSR) combines both share price appreciation and dividends paid. It shows the total return to shareholders over time. Return on Equity (ROE) measures the Bank's profitability. It represents the net profit generated as a percentage of the equity shareholders have invested. Earnings per share (EPS) measures the Bank's earnings growth. It is calculated by dividing net profit after tax by the number of shares on issue. If the dividend yield was 4% over the year to 30 June 2020, estimate the capital return on the shares. Over the year to 30 June 2020, the capital return was: Select one: O a. 14.3% pa b. 8.12% pa c. 6.3% pa d. -7% pa e. -15% pa

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Management For Nurse Managers Merging The Heart With The Dollar Merging The Heart With The Dollar

Authors: J. Michael Leger, Janne Dunham-Taylor

4th Edition

1284127257, 978-1284127256

More Books

Students also viewed these Finance questions

Question

What are the purposes of promotion ?

Answered: 1 week ago