Lesson Plan

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Lesson Plan
Grade: Date: 18/01/2026
Subject: Business
Lesson Topic: the meaning and importance of return to investors
Learning Objective/s:
  • Describe what “return to investors” means and why it matters.
  • Calculate key investment ratios (ROCE, ROE, ROA, Dividend Yield, EPS, P/E).
  • Interpret ratio results to assess company performance and investment decisions.
  • Compare ratios with industry benchmarks and a firm’s cost of capital.
  • Identify common pitfalls when analysing investment ratios.
Materials Needed:
  • Projector and screen
  • Whiteboard and markers
  • Printed handouts of ratio formulas and sample financial statements
  • Calculator or spreadsheet software
  • Laptop for teacher demonstration
  • Sticky notes for exit ticket
 Introduction:
Begin with a quick poll: “If you owned a share, what would you expect to get back?” Connect this to prior learning on profit and dividends. Explain that today’s success criteria are to calculate and interpret the key investment ratios that show return to investors.
Lesson Structure:
  1. Do‑now (5’) – Students write their poll responses on sticky notes and share expectations.
  2. Mini‑lecture (10’) – Define return to investors and discuss its importance with real‑world examples.
  3. Ratio walkthrough (20’) – Teacher demonstrates calculation of ROCE, ROE, ROA, Dividend Yield, EPS, and P/E using a sample set of accounts (projector + spreadsheet).
  4. Guided practice (15’) – Pairs calculate the six ratios from a provided worksheet; teacher circulates to support.
  5. Comparative analysis (10’) – Groups compare their results with industry averages and discuss implications for investment decisions.
  6. Pitfalls review (5’) – Whole‑class recap of common errors; students add one pitfall to a shared mind map.
  7. Exit ticket (5’) – Each student writes one ratio interpretation and one managerial action based on it.
Conclusion:
Recap the key ideas: what return to investors means, how the six ratios are calculated, and how they inform investment decisions. Collect exit tickets to gauge understanding. For homework, ask students to locate a recent listed company’s annual report, calculate two of the ratios, and write a brief commentary on their significance.