Critically analyse from appropriate theoretical perspectives the dividend policy announcements for the last 7 years[1] of the one of the following companies with respect to the development and generation of shareholder wealth.

Critically analyse from appropriate theoretical perspectives the dividend policy announcements for the last 7 years[1] of the one of the following companies with respect to the development and generation of shareholder wealth. The companies from which you can choose are:

 

WM Morrison Supermarkets Plc. (LON:MRW)

PepsiCo, Inc. (NSYE:PEP)

Pfizer Inc. (NYSE:PFE)

Nestle SA (VTX:NESN)

Airbus Group NV (AIR:FP)

Barrett Developments Plc. (LON:BDEV)

Sony Corp (TYO:6758)

Anhui Conch Cement Co Ltd (SHA: 600585)

China Southern Airlines Co Ltd (SHA: 600029)

 

You are required to explain and analyse how the dividend payments of the firms have contributed to the management goal of Shareholder Wealth Maximisation (SWM), if at all. You should draw adequate attention to the proxies and therefore meaning of the proxies for SWM (i.e. share price evolution of the chosen company across the 7 years in your discussion.

 

Your analysis should/need not be restricted to dividend payments in isolation, but address the financing and investment decisions which support the underlying dividends payments.

 

Guidance

 

The word limit is 2,500 words +/- 10%.

 

You must include both references and a bibliography to meet the academic requirements of the work.

 

The Assessment is designed to enable you to meet learning outcomes 1 & 6 of the designated learning outcomes for FIN3026-M, as such these are:

 

Upon successful completion of the module, you should be able to do the following. Only the two highlighted outcomes are specifically covered in this assignment; all outcomes will be covered within the summer examination

 

  1. Evaluate the importance of capital structure, risk and return and how these concepts are applied to the operations of the firm.
  2. Evaluate the major methods for foreign currency hedging
  3. Critically discuss risk management
  4. Calculate the price of simple options.
  5. Critically evaluate how derivatives may be used for risk management and speculation
  6. Critically discuss current issues associated with the application of corporate finance

An indicative guide to the application of marks to this assignment is as follows:

 

FIRST, 70% or more

  1. i) The work addresses all required elements
  2. ii) The narrative demonstrates particularly perceptive understanding

iii)      Presentation and clarity of expression are of the highest order

  1. iv) Extensive use of source material
  2. v) Excellent links between the event and theory

 

UPPER SECOND, 60% to 69%

  1. i) The work addresses all required elements
  2. ii) The narrative demonstrates strong understanding

iii)      Very few minor flaws in presentation and clarity of expression

  1. iv) Significant use of source material
  2. v) Effective links between the event and theory

 

LOWER SECOND, 50% to 59%

  1. i) The work addresses all required elements
  2. ii) The narrative demonstrates satisfactory understanding

iii)      A number of minor flaws in presentation and clarity of expression

  1. iv) Satisfactory use of source material
  2. v) Some links between the event and theory

 

THIRD, 40% to 49%

  1. i) The work addresses all required elements
  2. ii) The narrative demonstrates limited understanding

iii)      Significant flaws in presentation and clarity of expression

  1. iv) Limited use of source material
  2. v) Limited links between the event and theory

 

FAIL, below 40%

  1. i) The work does not address all required elements
  2. ii) The narrative demonstrates inadequate understanding

iii)      Extensive flaws in presentation and clarity of expression

  1. iv) Inadequate use of source material
  2. v) Inadequate links between the event and theory

[1] Your 7 year period should include the statements of the most recently published financial accounting period.

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