Lesson Plan

• Describe the different types of investors and the capital they provide.
• Explain how investors influence corporate decision‑making and governance.
• Identify where investor equity and debt appear in the statement of financial position and profit & loss.
• Calculate and interpret key investor‑related ratios (ROE, dividend payout, debt‑to‑equity, interest coverage).
• Apply ratio formulas to a practical example to assess a company’s financial health.

• Projector and screen
• Printed handout of investor types and ratio formulas
• Sample balance sheet and income statement excerpts
• Calculator worksheets
• Whiteboard and markers

Start with the question, “Who provides the money that lets a business grow?” Connect this to students’ prior knowledge of sources of finance. Explain that today they will explore the various investors, how these parties influence company decisions, and the key ratios used to evaluate investor impact. Success will be measured by their ability to identify investor categories in financial statements and compute the related ratios.

1. Do‑now (5') – Students list all sources of finance they recall and share on the board.
2. Mini‑lecture (10') – Define interested parties, focus on investors; present types with slide and brief examples.
3. Interactive activity (12') – In pairs, examine a sample balance sheet to locate equity and debt items representing investors.
4. Ratio workshop (15') – Guided calculation of dividend payout, ROE, D/E, and interest coverage using the provided practical example; students complete a worksheet.
5. Think‑pair‑share (8') – Discuss how different investor types might influence strategic decisions such as capital allocation and risk appetite.
6. Formative check (5') – Quick quiz/exit ticket (e.g., Kahoot) on key concepts and ratios.

Recap that investors supply capital, expect returns, and can shape strategy, and that we assess their impact using specific financial ratios. Students complete an exit ticket answering three short questions on investor types and ratio interpretation. For homework, they will locate a real company’s investor equity in its annual report and calculate one of the ratios covered in class.