Issued CapitalIssuing capital is one of the most common way to fund capital. The bar chart below shows the issued capital of woolowrths in past five years. We can see from the chart that there was a decrease of issued capital from 2009 to 2010. This because woolworths activated a off market share buy back plan which bought back 326.3 million shares in 2010. This means woolworths returned more than 1 billion dollars to its shareholders in this year. From 2010 to 2013, there is an upward trend of issuing capital. The issued capital kept growing from 3784.4 million in 2010 to 4522.7 million in 2013. There are two reasons for this growth. The first reason is that woolworths has a dividend reinvestment plan (DRP) for each financial year. In 2010 and 2011 the dividend reinvestment rate were both 14%. After that, the dividend reinvestment rate was 13% in 2012 and 12% in 2013. To satisfying the demand of shares from reinvestment, woolworths has to issue new shares. For example, in 2013, the shares worth $198.6 million were issued for the demand from DRP. Table 1 below summarizes the how much the new issued share worth for DRP in past five years.
Table 1The other factor lead to the increasing of issued capital is "the option exercised under executive share option plan". Table 2 below shows how much new shares issued worth for this purpose.
Table 2By contrast, we examined the issued capital of Loblaw for past five years at the same time. The issued capital of Loblaw is relatively stable in recent four years. $1476 million in 2010, $1540 million in 2011, $1567 million in 2012 and $1642 million in 2013. The reason for these slight change is mainly because of the new issue of shares to settle stock options. From 2009 to 2010, there is an obvious increasing of issued capital, from $1308 million in 2009 increased to $1476 million in 2010. This increasing was a result of common share issue in 2010. In this year, new common shares which were worth...