Polaroid Corporation

Polaroid Corporation 1996 Polaroid faces several moving in happens in March of 1996 that go away affect its support policy. Traditionally a one-product-line club, Polaroid sedate derives 90% of its revenues from motion picturegraphic products. Although the company enjoys a de facto monopoly on ostentation chemic photography, digital imagination technologies pose a impregnable threat. It is non clear how fast these technologies impart develop or agree the sack conventional photography, that it is clear that Polaroid will non progress to a monopoly in these markets. And the crop of quick one-hour photo exploitation processing could conciliate instant photography less(prenominal) good-hearted to consumers. Further, an increasing part of Polaroids revenues come from outside the fall in States. umteen of the gross revenue ar in developing countries: Russia just accounted for mountly 9% of 1995 sales. Polaroid does not open a gravid installed rear in these countries, and the Polaroid crisscross name may not be as unwavering as in the get together States. Although Polaroid uses world(prenominal) lines of credit and possibly new(prenominal) hedging techniques to reduce exchange risk, doing transmission line in developing nations poses an increased market risk. The harvest-time in international business is a logical flee the coop for Polaroid given that U.S.

sales are flat and brighten margins of unconnected sales devour been higher than domestic margins for the recent terzetto years. The increased risk and the possibility that the company will compulsion additional notes to develop or gain ground bleak technologies in the near future mean that Polaroid mustiness entertain a unattackable enough balance shroud to abide a weaken for future financing needs. metropolis be To assess Polaroids options, it is helpful to know the firms salute of capital. The companys bonds take up a BBB rating, and Hudson Guaranty estimates the fair(a) BBB-rated issuer has a greet of debt of 7.40% and a cost of equity of 10.5%. Polaroids outstanding notes and debentures have a weighted just yield of 7.95%. Using the...If you loss to get a chivalrous essay, order it on our website: Orderessay

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