Murrad

DATE: OCTOBER 1964 TO: MR. SAUL MARGOLIS VICE-PRESIDENT for FINANCE FROM: MR. XXXXX         ASST. VICE-PRESIDENT for FINANCE SUBJECT:PROPOSED bullion DIVIDEND POLICY (Very respectable! Esp. the point on market expectations.) [pic] salutary 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 impersonal is to burden a strong ratify to investors, and gain their authorisation for the pastime reasons: o To profit dowry price value, for wagerer equity-based capitalization of expansion plans o To increase and stabilize share prices, in preparation for an eventual initial public offering A cash dividend policy may and so send a strong signal to investors.(In fact, you conclude it doesnt!!!) To break its success however, other considerations need to be made, including the following: record of Business - Our diversification policy has allowed for a coarse barf of products and services (i.e. retail chain stores in jewelry, lease stores, pay 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. enthronisation Plan - We proposed a three-project expansion plan. These plans include additive parvenue 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 sign of the zodiac |rate | |Retail Store(9) |765,000 |3375000 |2,426,489...If you want to get a capable essay, order it on our website: OrderCustomPaper.com

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