Lesson Plan

• Describe the four components of a limited‑company capital structure.
• Explain the dividend, voting and liquidation rights attached to each component.
• Calculate total shareholders’ equity by summing the components.
• Analyse how the capital structure influences a company’s financing and dividend decisions.

• Projector and screen
• PowerPoint slides summarising each component
• Printed handout with the capital‑structure table
• Worksheets for the illustrative calculation
• Calculator for each student
• Poster paper and markers for group flowchart

Start with the question, “If a company makes a profit, who should receive money first?” Connect this to prior knowledge about shareholders and dividends. Explain that today’s success criteria are to identify each element of a limited company’s capital structure and to compute total equity.

1. Do‑now (5’) – Students write on a sticky note which shareholders get paid first and why.
2. Mini‑lecture (10’) – Present the four components (preference shares, ordinary shares, general reserve, retained earnings) using slides and the summary table.
3. Guided practice (12’) – Walk through the illustrative calculation, completing a worksheet together.
4. Group activity (10’) – Teams create a simple flowchart linking the components to total shareholders’ equity on poster paper.
5. Check for understanding (8’) – Quick Kahoot quiz on rights, voting power and liquidation order.
6. Recap & exit ticket (5’) – Students write one way the capital structure can affect financing decisions; teacher collects.

Review the key features of each capital‑structure component and how they combine to form total equity. Use the exit‑ticket responses to gauge understanding, and assign a short homework task: calculate the capital structure for a provided set of figures.