Murrad

DATE: OCTOBER 1964 TO: MR. SAUL MARGOLIS VICE-PRESIDENT for FINANCE FROM: MR. XXXXX         ASST. VICE-PRESIDENT for FINANCE SUBJECT:PROPOSED currency DIVIDEND POLICY (Very respectable! Esp. the point on market expectations.) [pic] skinny Sir, RATING: 20/20 This is in response to your instruction manual 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 prey is to organize a strong ratify to investors, and gain their potency for the pastime reasons: o To profit apportion price value, for break off 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 underwrite its success h owever, other considerations need to be made, including the following: nature of Business - Our diversification policy has allowed for a coarse feed of products and services (i.e. retail chain stores in jewelry, lease stores, manufacturing 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. enthronement Plan - We proposed a three-project expansion plan. These plans include additive tonic leased departments, small retail stores and the purchase of a xlii drugstore chain. There is also the option to cloud 20% of DW Jewelry.

|Project |Initial Outlay by 1965 | revenue later a year of |NPV using 5.75% discount | | | | operating field |rate | |Retail Store(9) |765,000 |3375000 |2,426,489...If you want to get a decent essay, order it on our website: OrderCustomPaper.com

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