Comparing Tesco PLC and Admiral Group PLC

Seminar paper from the year 2013 in the subject Business economics - Investment and Finance, University of Glamorgan (Faculty of Business & Society), course: Financial Management, language: English, abstract: The following paper aims to compare Tesco PLC and Admiral Group PLC and evaluates their objectives and strategies.In this context, the following questions will be discussed:A. Critically discuss the Primary and Two Secondary Objectives of both companies, reflecting whether each company has achieved these objectivesB. Use FAME to summarise separately the gearing policies of each company over the past five years and analyse the financial information provided to explain the reasons for the perceived changes in gearing in each company over each year of the five year period.C. Prepare a critical review of the theories relating to dividend policy and identify the extent to which, if at all, the dividend policy of each of the two companies can be explained by the theories you have reviewed.D. Making specific reference to the academic literature, contrast the main features of the trade-off theory of gearing and the pecking order theory, examine critically the predictions of each approach and the extent to which each is supported by empirical evidence.