Primary objectives of entities - part 2
Taught by Ben Wilson · AI tutor support included
You'll learn how to calculate shareholder wealth and understand what drives share valuations. This lesson covers total shareholder return (combining dividends and capital gains), how to interpret earnings per share and price-to-earnings ratios, and what these metrics reveal about market confidence.
This lesson is part of a paid course
Buy the course to unlock every video lesson and the AI Tutor, plus mock exams with feedback on CIMA courses.
Already bought? Sign in
Ask the AI tutor anything about this lesson
It knows every lesson in the course — explanations, clarifications, practice questions.
In this lesson
- 0:00 Shareholder wealth calculations introduction
- 0:10 Total shareholder return formula explained
- 0:52 How share price relates to PE ratio
- 1:17 Earnings per share calculation
- 1:38 Understanding PE ratio and market confidence
- 2:15 Total shareholder return worked example
- 3:22 PE ratio analytical question
- 5:55 Key takeaways on market capitalisation
About this lesson
Through worked examples, you'll see how to apply these calculations in practice and analyse company performance comparisons—essential skills for exam questions across ACCA and CIMA qualifications that test your understanding of how investors assess company value.
Duration: 7m
Transcript
Every lesson comes with a full searchable transcript - included with the course.
Get the F3 Objective Test course
All 134 video lessons, timed mock exams marked instantly with an explanation for every question, an AI Tutor in every lesson and lifetime access.
Already bought? Sign in