Murrad

DATE: OCTOBER 1964 TO: MR. SAUL MARGOLIS VICE-PRESIDENT for FINANCE FROM: MR. XXXXX         ASST. VICE-PRESIDENT for FINANCE SUBJECT:PROPOSED interchange DIVIDEND POLICY (Very respectable! Esp. the point on market expectations.) [pic] proficient 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 design is to train a strong ratify to investors, and gain their potency for the pastime reasons: o To profit contend price value, for offend equity-based capitalization of expansion plans o To increase and stabilize share prices, in preparation for an eventual initial public oblation A cash dividend policy may and so send a strong signal to investors.(In fact, you conclude it doesnt!!!) To catch its success however, other consid erations need to be made, including the following: character of Business - Our diversification policy has allowed for a coarse stretch of products and services (i.e. retail chain stores in jewelry, lease stores, execute 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. investiture Plan - We proposed a three-project expansion plan. These plans include additive sweet 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 1965 | revenue after a year of |NPV using 5.75% discount | | | | operating star sign |rate | |Retail Store(9) |765,000 |3375000 |2,426,489...If you want to get a suitable essay, order it on our website: OrderCustomPaper.com

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