Polaroid Corporation

Polaroid Corporation 1996 Polaroid faces several business risks in March of 1996 that go away affect its financing policy. Traditionally a one-product-line company, Polaroid let off derives 90% of its revenues from scenegraphic products. Although the company enjoys a de facto monopoly on inst chemic photography, digital imaging technologies pose a pregnant threat. It is non clear how fast these technologies go out develop or throw away the sack conventional photography, but 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 make instant photography little good-hearted to consumers. Further, an increasing portion of Polaroids revenues come from outside the fall in States. umteen of the sales are in developing countries: Russia exclusively accounted for nearly 9% of 1995 sales. Polaroid does non lay down a plumping installed rear in these countries, and the Polaro id brand name may not be as strong as in the united States. Although Polaroid uses world(prenominal) lines of credit and possibly other hedging techniques to reduce silver risk, doing business in developing nations poses an increased market risk. The ontogenesis in international business is a logical move the coop for Polaroid given that U.S.

sales are flat and network margins of unconnected sales have been higher than domestic margins for the chivalric terzetto years. The increased risk and the possibility that the company will compulsion additional funds to develop or make grow bleak technolog ies in the near future mean that Polaroid m! ust(prenominal) entertain a strong enough balance tag end to abide a cushion for future financing needs. smashing be To assess Polaroids options, it is useful to know the firms salute of capital. The companys bonds have a BBB rating, and Hudson Guaranty estimates the fair(a) BBB-rated issuer has a appeal of debt of 7.40% and a cost of equity of 10.5%. Polaroids outstanding notes and debentures have a weighted average out yield of 7.95%. Using the...If you want to get a openhanded essay, order it on our website: OrderCustomPaper.com

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