Logic - Shareholder Value

The Shareholder Value represents the increase in wealth obtained by a shareholder in the firm. This table shows how shareholder value is calculated and a summary is available in the financial results report.

The figure which is most important is in the final row - the Cumulative Change. This represents the return which an investor with one share purchased at the end of the first period would have received to date. This number is made up of:

• the share price increase;
• the dividend payments received;
• any return that would have been earned on dividends received in the past.

The Change in Year represents the percent increase (or decrease) in shareholder wealth for that period, and the Cumulative Change represents the percent increase (or decrease) in shareholder wealth since the first period. For the purposes of this simulation, the base value for calculating Cumulative Change is the share price at the time you take over the management of the firm.