Investing in Equities Case of Morrison Supermarkets Plc Essay

Investing in Equities Case of Morrison Supermarkets Plc - try out ExampleThe organization was selected due to its recent trend in performance, operations, and positioning within the industry. Tables 1, 2 and 3 in the Appendices show the operations, performance, and market positioning of Morrison Supermarket Plc. In terms of the performances, Morrison has provided a positive indicate specially in respect to the market capitalization as well as the volume of parts traded (Table 2). On the some other hand, Table 2 shows that amongst the various players in the industry, Morrison Supermarket Plc had experienced a positive change in the sh ar price. Lastly, Table 3 provides a deeper understanding of the performance of the Morrison Supermarket Plc hence justifying the reason behind its investment. From the information contained in Tables 1, 2 and 3, it is excrete that Morrison Supermarket Plc is a profitable organization to invest in shares or other securities. The feature that during the fiscal year 2010 Morrison Supermarket Plc was able to pay dividends. The fact that the firm was able to pay dividends is a clear justification that investing in this organization is likely to yield to more profits and returns. Therefore, this was the main pauperism behind the investment of ?10,000 in shares between 2008 November and 2012 December. In this report, findings, which are in terms of financial analyses, are provided. The report concludes by an overview of the investment process as well as recommendations towards further investments. Findings The investment have-to doe with buying shares worth ?10,000 between 2008 November and 2012 December. Table 4 within the Appendices provides the value of shares at the stock and at the end of 2008, 2009, 2010, 2011, and 2012. The sideline calculations are based on the figures in Table 4 within the Appendices section. Assumptions The following are the assumptions used in writing this report 1. The earned dividends were reinvest ed throughout the years. 2. The total descend obtained from the amount invested and the dividend earned is invested at the beginning of a fiscal year hence the close price of the beginning of the year is applied In November 2008, the share price = ?242.50 (close) Total join of investment = ?10,000 It is important to think the number of shares since dividend is usually earned per share. Therefore, the number of shares will be given by the following verbalism No of shares bought in 2008 = 41 shares. The following table shows how the 41 shares earned dividends and how the dividends were re-invested and more shares bought (NB. The table is obtained from calculations performed in an pass by function the Excel file is attached) Based on the above assumptions, the calculations were done on the Excel (Excel file attached) and the following table shows the results. The table is also obtained in Table 5 of the Appendices. Date Amount Close Price Shares Dividend Earned Dividends Total Amo unt Nov-08 10,000.00 242.50 41.24 0.00 10,000.00 May-09 10,000.00 242.50 41.24 5.00 206.19 10,206.19 Sep-09 10,206.19 236.50 43.16 1.08 46.61 10,252.79 May-10 10,252.79 280.00 36.62 7.12 260.71 10,513.51 Sep-10 10,513.51 266.10 39.51 1.23 48.60 10,562.10 May-11 10,562.10 293.80 35.95 8.73 313.84 10,875.95 Sep-11 10,875.95 297.70 36.53 3.17 115.81 10,991.76 May-12 10,991.76 302.20 36.37 7.53 273.88 11,265.64 Sep-12 11,265.64 266.10 42.34 3.49 147.75 11,413.40 Total 1,413.40 11,413.40 From the above table it is evident that thither was a return of ?1,413.40 on the ?10,000 amount invested in shares between November 2008 and September 2012. Ratio Analysis for 2012/2013 In a bid to provide further justification on the reasons for the selection of