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TASK -2
Domino pizza Expected Return
Expected return= 49% (average of the last five year’s return)
=0.05-0.21+0.95+0.71+0.96/5=49%
Retail Food Expected Return
Expected return= -4% (average of the last five year’s return)
=-0.85-0.04+0.12+0.30+0.27/5 = -4%
TASK-3
Domino pizza – total return to share holders
Total return to share holder=40%
(51+ (1.03+0.872+0.619+0.436+0.1984+0.155)/10.66)1/5 -1 = 40%
Retail food- total return to shareholders
Total return to shareholders = -2%
(0.54 + (0.15+0.29250+0.2475+ 0.2275+0.21+0.095)/3.1785)1/5 -1 = -2%
TASK-4
Comparison between the share prices of the two corporations
The retail food group has lost its share price by quite a bit in the last 5 years’ time while domino pizza continues to grow its share price apart from one year the prices have always been on the rise. This shows that the demand for retail group’s share reduced while for that of domino pizza it raised for the most part of the last five years, this is a clear indicator of the fact that Domino Pizza has outperformed Retail food group when it comes to being a better investment opportunity.
TASK-5
ANNUAL GROWTH IN EARNING PER SHARE
Formula: diluted eps 2018 – diluted eps 2017/ diluted eps 2017
Dominos pizza
139-114.7/114.7= 0.21= 21%
Retail food
-170-36/36 = -5.75= - 575%
Net profit margin
Formula: profit for period of continued operation/ revenue
Dominos pizza
121,693/ 794,072= 15%
Retail food
-306,693/ 297,719 = -103%
Asset turnover ratio
Formula: revenue /average total asset
Dominos pizza
794,072/1,217,602 = 65%
Retail food
297,719/765,069 = 39%
Leverage ratio
Formula: average total assets/ average total equity
Dominos pizza
1,217,602/361,364 = 3.37
Retail food
765,069/311606 = 2.46
Return on equity
Formula: profit for the period of continued operations/ average total equity
Dominos pizza
121,693/ 361,364 = 34%
Retail food
-306,693/ 765,069 = -40%
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