Murrad

DATE: OCTOBER 1964 TO: MR. SAUL MARGOLIS VICE-PRESIDENT for FINANCE FROM: MR. XXXXX         ASST. VICE-PRESIDENT for FINANCE SUBJECT:PROPOSED funds DIVIDEND POLICY (Very respectable! Esp. the point on market expectations.) [pic] beloved Sir, RATING: 20/20 This is in response to your book of 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 butt is to rate a strong ratify to investors, and gain their dominance for the pastime reasons: o To profit part price value, for crack equity-based capitalization of expansion plans o To increase and stabilize share prices, in preparation for an eventual initial public pass A cash dividend policy may and so send a strong signal to investors.(In fact, you conclude it doesnt!!!) To cover its success however, other considerations need to be made, including the following: record of Business - Our diversification policy has allowed for a coarse operate of products and services (i.e. retail chain stores in jewelry, lease stores, invent and packaging of cosmetics and drugs, etc.) having different market sensitivities. This overall constancy improves the likeliness of a steady cash flow to confirm the proposed dividend payout. enthronement Plan - We proposed a three-project expansion plan. These plans include additive new-fangled leased departments, small retail stores and the purchase of a 42 drugstore chain. There is also the option to cloud 20% of DW Jewelry.

|Project |Initial Outlay by 196! 5 | revenue later on a year of |NPV using 5.75% discount | | | | operating firm |rate | |Retail Store(9) |765,000 |3375000 |2,426,489...If you want to get a competent essay, order it on our website: OrderEssay.net

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