The dividend yield as well as capital growth for 2004 must be calculated with reference to the 2003 end-of-year share price. The dividend yield is 0·56% (100 × 2·8/500·8) as well as the capital growth is -16·35% (100 × (418·9 - 500·8)/500·8) so the total shareholder return is -15·79% or - 15·8% (0·56 - 16·35). A negative return of 15·8% seem to be even worse when it is noted that annual inflation for 2004 was 3·5% (117/113).

whilst the negative total shareholder return is at odds with the chairman's claim to have delivered growth in dividends and share price in 2004 a different view might have emerged if average share prices had been used since the return calculation ignores share price volatility.

The chairman must also be aware that share prices may be affected by other factors than corporate activity so a good performance in share price terms mayn't be due to managerial excellence. It as well possible that the negative return may represent a good performance when compared to the sector as a whole in 2004 further this information is necessary to assess this.

Note that total shareholder return is able to also be found as (100 × (2·8 + 418·9 - 500·8)/500·8).