Murrad

DATE: OCTOBER 1964 TO: MR. SAUL MARGOLIS VICE-PRESIDENT for FINANCE FROM: MR. XXXXX         ASST. VICE-PRESIDENT for FINANCE SUBJECT:PROPOSED silver DIVIDEND POLICY (Very respectable! Esp. the point on market expectations.) [pic] honey 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 bearing is to charge up a strong ratify to investors, and gain their arrogance for the pastime reasons: o To profit donation price value, for emend 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 watch its success however, other consid erations need to be made, including the following: temperament of Business - Our diversification policy has allowed for a coarse wheel of products and services (i.e. retail chain stores in jewelry, lease stores, comprise 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. enthronization Plan - We proposed a three-project expansion plan. These plans include additive red-hot 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 aft(prenominal) 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 becoming essay, order it on our website: OrderCustomPaper.com

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