Critical Analysis Of The Financing Policies of Tesco plc

Hausarbeit (Hauptseminar) , 2015 , 21 Seiten , Note: 85%

BWL - Investition und Finanzierung

The working paper aims to critically discuss Tesco's primary and secondary objectives. Moreover, the development of Tesco's gearing policy and the impact on financial figures is analysed. In a next step, literature on dividend policies is reviewed and applied to Tesco. In a last step, the capital structure policy of Tesco in respect to the pecking order and trade of theory is assessed.

Table of Content

• Critical Discussion of Tesco's Objectives
• Primary Objective
• Secondary Objectives
• Gearing Policy
• Development of Gearing
• Impact on Financial Figures
• Dividend Policy
• Literature review
• Analysis of Tesco
• Capital Structure Policy
• Pecking Order Theory
• Trade-Off Theory
• Appendices
• References

Objectives and Key Themes

This assignment critically analyzes the financing policies of Tesco plc, a leading grocery retailer, with a focus on its objectives, gearing policy, dividend policy, and capital structure policy. The main objective of the analysis is to provide a comprehensive understanding of Tesco's financial management strategies and their impact on the company's performance.

• Maximizing shareholder satisfaction
• Balancing financial performance and social responsibility
• Managing financial risk and leverage
• Optimizing capital structure and dividend policy
• Adapting to changing market conditions

Chapter Summaries

The first chapter examines Tesco's objectives, focusing on the primary objective of maximizing shareholder satisfaction. It analyzes the company's performance in terms of share price and dividend development, highlighting the challenges faced in recent years.

The second chapter delves into Tesco's gearing policy, exploring the development of gearing ratios and their impact on key financial figures. It discusses the potential benefits and drawbacks of different gearing levels.

The third chapter analyzes Tesco's dividend policy, reviewing relevant literature and examining the company's dividend payment history. It assesses the factors influencing dividend decisions and their implications for shareholder returns.

The fourth chapter explores Tesco's capital structure policy, focusing on the pecking order theory and the trade-off theory. It analyzes the company's approach to financing decisions and its implications for financial stability and growth.

Keywords

This assignment focuses on the critical analysis of financing policies, specifically within the context of Tesco plc. Key themes include shareholder satisfaction, gearing policy, dividend policy, capital structure, pecking order theory, and trade-off theory. The analysis draws on relevant literature and examines the impact of financial management strategies on Tesco's performance.

• Hochschule: University of South Wales
• Note: 85%
• Autor: Marvin Müller (Autor:in)
• Erscheinungsjahr: 2015
• Seiten: 21
• Katalognummer: V315138
• ISBN (eBook): 9783668149953
• ISBN (Buch): 9783668149960
• Sprache: Englisch
• Schlagworte: Financial Management, Gearing Policy, Dividend Policy, Capital Structure Policy, Financing Policies, Critical analysis