Assessing the impact of the dividend policy on value of shareholders

Research Project

Table of Contents
TITLE:.............................................................................................................................................1
Chapter 1: Introduction....................................................................................................................1
Overview of research..................................................................................................................1
Background of company.............................................................................................................1
Rationale of study.......................................................................................................................2
Significance of research..............................................................................................................2
Aim of study................................................................................................................................2
Research Objectives....................................................................................................................2
Research Questions.....................................................................................................................3
Time scale...................................................................................................................................3
Chapter 2: Literature Review...........................................................................................................4
Impact of dividend policy on shareholders' wealth.....................................................................4
The effect of dividend policy on value of the firm.....................................................................4
Theories which associate with dividend.....................................................................................4
The suggestion to organisation on significant effect of dividend policy on share valuation......4
Chapter 3: Research Methodology...................................................................................................5
Chapter 4: Data Analysis and Discussion:......................................................................................6
Data analysis...............................................................................................................................6
QUESTIONNAIRE.....................................................................................................................6
REFERENCES................................................................................................................................9

TITLE:
“Assessing the impact of the dividend policy on value of shareholders. At Tesco in
Twickenham”.
Chapter 1: Introduction
Overview of research
Dividend is the payment of money which is paid to shareholders out of profits after
payment of all the expenditure. Dividend is the amount which is required to paid to maintain
satisfaction of shareholders. Organisation earns high profits but at the same time, they have to
pay some amount as dividend, so they will get proper income from the money which they invest
in organisation. Dividend has to be paid to shareholders because they are the owners of
organisation and they have decision making rights. In order to determine and evaluate the
changes properly, there is proper understanding through which operations are performed in
appropriate and specific manner. In current market, there are many changes taking place, so it is
essential and relevant to determine the changes which affects the satisfaction of shareholders.
This investigation is based on TESCO PLC which is one of the leading organisation in retail
sector. This association have operations in different countries, so they have vast range of
shareholders. Hence in this study, there will discussion about effect of changing dividend
policies on value of firm.
Background of company
TESCO PLC is the association which have wide base of shareholders because they have
good turnover and net worth. With change in working style, it is essential and significant for
people to understand and determine the changes which they have to make. TESCO PLC is
British multi national grocery store having head quarter in England UK. This association is
around third largest in terms of revenue and operating in seven countries including Asia, Europe,
Ireland, Hungary, etc. TESCO PLC is operating as electronics, clothing, books, toys, petrol,
financial services, software, etc. There are two types of shareholders whom are liable for
dividend i.e. common shareholders and preferred shareholders. It is not essential that
organisation will earn similar rate of profits all the tome, so there are possibilities that they have
to change their dividend policy and perform operations in better and effective manner.
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