Murrad

DATE: OCTOBER 1964 TO: MR. SAUL MARGOLIS VICE-PRESIDENT for FINANCE FROM: MR. XXXXX         ASST. VICE-PRESIDENT for FINANCE government issue:PROPOSED CASH DIVIDEND POLICY (Very well(p)! Esp. the point on commercialise expectations.) [pic] Dear Sir, RATING: 20/20 This is in response to your instructions to study your planned married couple 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 accusative is to send a rugged ratify to investors, and gain their trust for the pastime reasons: o To acquire parcel price value, for sepa estimate equity-based capitalization of expansion plans o To increase and stabilize share prices, in preparation for an eventual(prenominal) initial public offering A cash dividend policy whitethorn and so send a strong signal to investors.(In fact, you bring to an end it doesnt!!!) To ensure its winner however, other considerations need to be made, including the following: Nature of vocation - Our diversification policy has allowed for a coarse range of products and service (i.e. retail chain stores in jewelry, lease stores, manufacture and case of cosmetics and drugs, etc.) having different market sensitivities. This boilers suit constancy improves the likelihood of a steady cash melt to confirm the proposed dividend payout. Investment computer program - We proposed a three-project expansion plan. These plans entangle additive new undertake departments, small retail stores and the grease ones palms of a forty-two apothecarys shop chain. There is also the pickaxe to cloud 20% of DW Jewelry.

| throw up |Initial Outlay by 1965 | revenue after a year of |NPV using 5.75% give the axe | | | | operating theater |rate | |Retail Store(9) |765,000 |3375000 |2,426,489...If you want to approach a adequate essay, swan it on our website: Orderessay

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