Financial Analysis of Two Companies - Desklib

DOLLARS AND SENSE
STUDENT ID:
[Pick the date]

CASE STUDY 1
TASK 1
The holding period return for each of company for year from 30 June 2013 to 30 June 2018 is
computed using the following approach.
Formula for holding period return
Holding period= Pricecn+1−Pricecn+ Dividend
Pricen
Closing adjusted prices as on June 30
Dividend date June 30, 2013 to June 30, 2018
Annual holding returns
2

TASK 2
Expected return for each of company based on five-year historical sample of return is
highlighted below.
Expected Return
Dominos Pizza Enterprises= 104.41+70.94 +95.11−21.12+ 4.71
5 =50.81% p . a .
Retail Food Group= 27.05+ 30.26+12.40−5.13−84.83
5 =−4.05 % p . a.
TASK 3
Total return to the shareholders for each of the company over five year from 30 June 2013 to
30 June 2018 is highlighted below.
Total return
Total return ¿ the shareholders= [ P5−D1−5
P0 ]1
5
−1
For Dominos Pizza Enterprises= [ 51−3.288
9.78 ]1
5 −1=40.89 %
For Retail Food Group= [ 0.54−1.1275
3.1785 ]1
5 −1=−12.10 %
TASK 4
It can be said based on the above analysis that total returns to the shareholders of Domino’s
Pizza Enterprises are significantly higher than the total returns to the shareholders of Retail
3