what is the investor s tsr over those two years it would be calculated as
so the tsr would be 42 5 as an equation tsr 2 4 2 0 4 5 0 2 0 0 4 2 5 1 0 0 4 2 5 begin aligned text tsr big 24 20 4 50 big div 20 0 425 times 100 42 5 end aligned tsr 24 20 4 50 20 0 425 100 42 5 note if you prefer to think of tsr in dollar terms versus percentage you would simply do the first two steps above to have 8 50 per share as your total shareholder return aka stock return cash value as it s called in this form for fiscal year 2020 microsoft corporation msft had a tsr of 59 4 for investors who had held it for that entire period of that amount 57 6 came from an increase in share price and 1 8 was returned from dividends 1 tsr can also be considered the internal rate of return irr of all cash flows to an investor during the period they ve held their shares advantages and disadvantages of total shareholder return tsr simple to calculate easy to understandmore complete evaluation of investment s wortheasy to compare to other companies or benchmarksgood gauge of long term performancelimited to past performance no sense of future returnseffective only for investments with cash inflowssensitive to stock market sentiment