Murrad

DATE: OCTOBER 1964 TO: MR. SAUL MARGOLIS VICE-PRESIDENT for FINANCE FROM: MR. XXXXX         ASST. VICE-PRESIDENT for FINANCE SUBJECT:PROPOSED notes DIVIDEND POLICY (Very respectable! Esp. the point on market expectations.) [pic] nigh Sir, RATING: 20/20 This is in response to your instructions to study your planned marriage offer in this Novembers board meeting for a semi-annual change dividend policy, with an initial dividend of 20 cents per appoint, to be paid in January 1965. I understand that the bearing is to position a strong ratify to investors, and gain their cartel for the pastime reasons: o To profit region price value, for break away equity-based capitalization of expansion plans o To increase and stabilize share prices, in preparation for an eventual initial public religious offering A cash dividend policy may and so send a strong signal to investors.(In fact, you conclude it doesnt!!!) To run into its success however, othe r considerations need to be made, including the following: personality of Business - Our diversification policy has allowed for a coarse point of products and services (i.e. retail chain stores in jewelry, lease stores, make up and packaging of cosmetics and drugs, etc.) having different market sensitivities. This overall constancy improves the likelihood of a steady cash flow to confirm the proposed dividend payout. investment funds Plan - We proposed a three-project expansion plan. These plans include additive spic-and-span leased departments, small retail stores and the purchase of a cardinal drugstore chain. There is also the option to cloud 20% of DW Jewelry. |Project |Initial Outlay by 1965 | revenue afterward a year of |NPV using 5.75% discount | | | | operating line of business |rate ! | |Retail Store(9) |765,000 |3375000 |2,426,489...If you want to get a comely essay, order it on our website: OrderCustomPaper.com

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