International Financial Management: Analysing Tesco's Dividend Policy, Efficient Market Hypothesis Theory, and Project Appraisal Methods

International Finance
Management

Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Analysing and evaluating Tesco Plc dividend distribution policy ..............................................1
Efficient market hypothesis theory of Tesco Plc ........................................................................2
Tesco Plc methods of appraising projects ...................................................................................3
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................5

INTRODUCTION
In present world conditions, international finance management is a well-known
expression also known as international finance. It means the management of finance in an
international business environment which can be explained as trading and making money
through the exchange of foreign currency. These activities help organisations to connect with
overseas business partners, customers, suppliers, lenders and many more (Aizenman and
Jinjarak, 2020). Tesco Plc is a British multinational grocery and general merchandise retailer
headquartered in Welwyn Garden City, England. It was founded in 1919 by Jack Cohen. This
report includes a critically analysing and evaluation of the dividend distribution policy of Tesco
Plc and the efficient market hypothesis theory. Further, this report includes methods of
appraising projects.
MAIN BODY
Analysing and evaluating Tesco Plc dividend distribution policy
A dividend is a distribution of profits by a corporation to its shareholders and it is
determined by the company's board of directors. The dividend distribution policy of a company
tells the number of dividends and the frequency at which the company pays to its shareholders.
The company should follow different types of policies related to the dividend (Chiaramonte,
2018). The four most common type of policies regarding dividend is:
 Regular dividend policy – Under this arrangement, the organization follows the technique
of consistently delivering profits to investors. This is accepted when there is a steady
income and a stable income stable dividend policy – Under this, the company pays out a
fixed percentage of profits as a dividend yearly.
 Irregular dividend policy – The strategy contains the organization expressing no
commitment to providing profits to investors.
 No dividend policy – Under this strategy, the organization does not generate any profit
for investors, regardless of its benefits or misfortunes.
The annual profit per share divided by the quoted cost is called the profit margin. As for
Tesco, the group's earnings strategy and total dividend per share depend on offers held by
investors on the record date, but earnings returns are still up in the air. Profits can be paid out
with real money or used to buy more Tesco Plc shares. According to the London Stock
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