why would a shareholder be interested in the businesses financial information?

Kayleigh

New member
i'm doing my higher business management homework and the question is from the 2005 past paper and i worth four marks but i can only come up with these two:
to see if they are recieving a fair dividend from the business
to see if the should buy more or sell their shares

homework for tomorrow
 
I would look at it this way: I would want to know the companies' revenue, net income, dividends if any and retained earnings. I would want to know if the company is generating sufficient cash flow to cover expenses, for profits and to pay a dividend. I would want to know the company's debt structure. Do they have more debt to equity? Look at their liabilities and interest expenses. Do they have enough to cover interest expenses at particular points in time? If they company has more debt it may be harder for them in trying times to pay this interest to their debt obligations. This would hurt the company and its' stock price. If a company has decreasing revenues, is the company saturated in the market place? Does it have any more room to run so its' price can appreciate? Are there revenues decreasing because of increased competition, cheaper price to sell their products?

This is just some... hope it helps.

chris
 
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