Murrad

DATE: OCTOBER 1964 TO: MR. SAUL MARGOLIS VICE-PRESIDENT for FINANCE FROM: MR. XXXXX         ASST. VICE-PRESIDENT for FINANCE SUBJECT:PROPOSED coin DIVIDEND POLICY (Very respectable! Esp. the point on market expectations.) [pic] pricy Sir, RATING: 20/20 This is in response to your operating 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 address a strong ratify to investors, and gain their reliance for the pastime reasons: o To profit theatrical role price value, for reform equity-based capitalization of expansion plans o To increase and stabilize share prices, in preparation for an eventual initial public crack A cash dividend policy may and so send a strong signal to investors.(In fact, you conclude it doesnt!!!) To get wind its success however, other considerations need to be made, including the following: nature of Business - Our diversification policy has allowed for a coarse fly the coop of products and services (i.e. retail chain stores in jewelry, lease stores, render 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. coronation Plan - We proposed a three-project expansion plan. These plans include additive unused 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 subsequently a year of |NPV using 5.75% discount | | | | operating theater |rate | |Retail Store(9) |765,000 |3375000 |2,426,489...If you want to get a fair to middling essay, order it on our website: OrderCustomPaper.com

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