Tesco plc is one of the world’s largest retailers, with operations in the UK, Europe and Asia. It
employs more than 500,000 people.
Required:
Write a report, purely from a UK perspective, that: (a) discusses the factors that influence a
company’s dividend policy; (25 marks) (b) outlines Tesco plc’s dividend policy and payout history,
comparing them to those of its major competitors and the sector average; and (15 marks) (c)
recommends a dividend policy for Tesco plc, based on your analysis from (a) and (b). (10 marks)