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Good Essays
Finance course work
This is a report to demonstrate the financial position of Tesco plc. In performing this report the annual report of Tesco plc. was analysed and carefully reviewed. In addition to this, in order to compare the company’s performance, the financial statement is compared to its closest competitor which is Sainsbury’s. 1. Capital structure
As mentioned in the financial report of Tesco plc the group finances its operations by a combination of retained profits, disposals of property assets, long and medium-term debt capital market issues, short-term commercial paper, bank borrowings and leases.
Equity of the Group as at 2011
Type of finance the company may have risen.
Attach one copy of B.S use ratios
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Shareholders ' wealth is basically the wealth shareholders get to accumulate from their ownership of shares in a firm. Shareholders wealth increases by any possible amount. This means that either increase in share prices that bring about capital gain or increase in dividend payments. Significant this fact, a firm can maximize shareholders wealth through this way. However, an optimal point needs to be struck as a firm needs to balance the risk and return involved. Shareholders ' wealth is also known as shareholders value.

Shareholders wealth is more credible than any other account in a business or financial statement of a business organization. Because those concerned with the business continuity like, revenue, growth on capital or survival of a company. All are dependants on the wealth of the company. If the organization maximized its profit, to higher account, simultaneously revenue (profit) will increase to maximum and risk of the company’s survival will decrease to minimum.

The decision of profitability is accomplished by the managers of the company. The objective is done according the strength or weakness of the financial statement prepared by management accounting. It helps the responsibility takers. Those are managers to make a suitable condition that maximizes the benefit of the organization. From this profit is the shareholders get wealth through dividends and improvement of share price. The buyers of
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