Task A:
You work in the treasury department of Kellogg’s, a large Multinational belonging to the consumer packaged goods industry, which operates in 180 countries and products being manufactured in 18 countries, which operates in 9 different countries, and which is listed on the NYSE stock exchange.
The company’s CFO has been asked to lead a discussion with major shareholders about the company’s future dividend policy. As a result, he has asked you to prepare an internal management report on the topic. He requests that your report should:
· Explain why the dividend decision is important
· Review the company’s dividend policy and performance over the last five years
· Outline the major dividend policy “theories”, and
· Recommend a future dividend policy for Kellogg’s