Case Study 35 Deluxe Corporation Des
Case 35 Deluxe Corporation 1. What are the risks associated with Deluxe’s business and strategy? What financing requirements do you foresee for the firm in the coming years? 1) Short term financing needs Working capital, capital asset purchases, possible acquisitions, repayment of outstanding debts, dividend payments and repurchasing the firm’s securities. In February 2001, Deluxe paid off $100 million of its 8.55% long-term unsecured and unsubordinated notes, which is had issued in 1991. 2) Repurchase program: As shown as below, in the end of 2001, the company repurchase 11.3 million shares. Singhalso believe that the board would continue to pursue an aggressive program of share repurchase. 3) Other demands on the firms resources: Cash dividends would be held constant for the foreseeable future. Capital expenditures would be about equal to depreciation for the next few years. 4) Considerations in assessing financial policy In addition to assessing Deluxe’s internal financing requirements, singh recognized that his policy recommendations would play an important role in shaping the perceptions of the firm by bond-rating agencies and investors. 2. What are the main objectives of the financial policy that Rajat Singh must recommend to Deluxe Corporation’s board of directors? Sihgh believed that it was essential that the company’s financial policies afford it
Это так важно. - Извините, - холодно ответила женщина. - Все совсем не так, как вы подумали. Если бы вы только… - Доброй ночи, сэр. - Кассирша опустила металлическую шторку и скрылась в служебной комнате.