In 2005/06 we raised more than ? 3. 2m for charity in its stores. This included ? 270,000 for Home-Start, a charity helping families with young children, and more than ? 330,000 through the charity donation boxes in stores. Sainsbury’s has supported Comic Relief’s Red Nose Day since 1999. In June 2005 it committed to working with Comic Relief for a further seven years, as its sole retail partner until 2011. It also committed for the first time to working with Sport Relief, set up by Comic Relief in association with BBC Sport, also until 2011.
The money raised by Comic Relief and Sport Relief helps poor and disadvantaged people in the UK and some of the poorest countries in the world to make long-term changes to their lives. Sainsbury has been donating food since 1998 to charities such as the Salvation Army, FareShare and Food For All. The food, which is safe, edible and nutritious, is beyond its display-by date but within its use-by date. Some food goes to zoos and animal sanctuaries if suitable social charities can’t be found. We ended 2005/06 with 270 stores donating surplus food to charities, 27 more than last year.
However, overall volumes donated were down on last year. This was due to the development and implementation of california choppers case study to address the root causes of having food surpluses in the first place. But the value of food donated to charity was still over ? 3. 3 million. Our target is to link each of our supermarkets with a charity by the end of March 2007. This will not only demonstrate our support for the less advantaged in our local communities, but will also reinforce our commitment to the environment by diverting even more of our surplus food from landfill sites.
Valuation of Sainsbury Plc We will apply a similar methodology like we did for Tesco Plc. Sanisbury paid out more dividends that profits made in 2006. ?131 million pounds was paid out as dividends whereas its profit was only ? 58 million. We therefore assume that the growth rate in dividends is expected to be 0. the dividend yield is given by 1. 4% as reported in the company’s website. There is not enough information for us to estimate a capitalization rate for the company.
For example even if we want to use the capital asset pricing model, we do not know the beta of the stock neither do we know the market return nor the risk-free rate of return. However, we will make an assumption here that since both sainsbury and Tesco are in the same industry, they should face the same risk and therefore should have the same cost of equity capital of 13. 7% From the forgoing if we assume also that the company’s dividends will remain constant at ? 131 million then we can calculate a value for the firm by simply capitalizing these dividends.
The money raised by Comic Relief and Sport Relief helps poor and disadvantaged people in the UK and some of the poorest countries in the world to make long-term changes to their lives. Sainsbury has been donating food since 1998 to charities such as the Salvation Army, FareShare and Food For All. The food, which is safe, edible and nutritious, is beyond its display-by date but within its use-by date. Some food goes to zoos and animal sanctuaries if suitable social charities can’t be found. We ended 2005/06 with 270 stores donating surplus food to charities, 27 more than last year.
However, overall volumes donated were down on last year. This was due to the development and implementation of california choppers case study to address the root causes of having food surpluses in the first place. But the value of food donated to charity was still over ? 3. 3 million. Our target is to link each of our supermarkets with a charity by the end of March 2007. This will not only demonstrate our support for the less advantaged in our local communities, but will also reinforce our commitment to the environment by diverting even more of our surplus food from landfill sites.
Valuation of Sainsbury Plc We will apply a similar methodology like we did for Tesco Plc. Sanisbury paid out more dividends that profits made in 2006. ?131 million pounds was paid out as dividends whereas its profit was only ? 58 million. We therefore assume that the growth rate in dividends is expected to be 0. the dividend yield is given by 1. 4% as reported in the company’s website. There is not enough information for us to estimate a capitalization rate for the company.
For example even if we want to use the capital asset pricing model, we do not know the beta of the stock neither do we know the market return nor the risk-free rate of return. However, we will make an assumption here that since both sainsbury and Tesco are in the same industry, they should face the same risk and therefore should have the same cost of equity capital of 13. 7% From the forgoing if we assume also that the company’s dividends will remain constant at ? 131 million then we can calculate a value for the firm by simply capitalizing these dividends.
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