Question

hi! please how do i explain how company deliver their shareholders value compared to market index.

Answer 1

the shareholders receive dividends for their investments besides which they can have capital gains (by selling their shares at a higher price when compared to what they have purchased) when the stock prices increase due to better performance in the secondary markets.

Answer 2

thanks@saliu!does that mean i have to calculate or check the dividend from the balance sheet?

Answer 3

helloo, the way that a company deliver shareholder value is comprised of 2 aspects:
1.Dividends
2.Increase of the value of the share
both aspects are comprised in the Ke (Cost of Equity).
Ke is the required rate of return that a shareholder demands to your comapny in order
to don´t sell the shares.
A owner from a company (shareholder)pay to their managers to achieve a higher return than the they could achieve alone ( investing in listed stock companies of the same industry and risk) if not , it doesn´t make sense to have managers