Minicase Dividend Policy

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Dividend Policy DEANNA PEREZ FASHIONS, INC. Directed As a young adult in her mid-twenties, Deanna Perez emigrated from Spain with her family to New York City in the early 1950s. Deanna was artistically inclined and loved women’s fashions. Even as a young girl, Deanna had spent hours drawing, designing, and sewing outfits for her dolls; consequently, it was no surprise to her family when she took a job in the fashion industry. It was Deanna’s dream to someday be successful, wealthy, and own her own company. Deanna worked for a few years as an apprentice for various well-known fashion designers, but she grew frustrated because her creativity was being suppressed more and more frequently. She decided that it was time for her to…show more content…
Also, DPF’s liquidity position had deteriorated considerably. See Table 1. The firm has continued to face problems in its target market during the frugal nineties, as have other apparel firms. The money spent on apparel has dwindled for a number of reasons. First, clothing has never been involved in as much competition for the consumer dollar as it now faces. Purchases of constantly updated personal computers and communications equipment is a relatively new element now taking a big chunk of disposable income. Second, the overriding trend toward casual dressing, the wearing of untailored, easily cared for, and lower-priced clothing cuts down on the number of garments needed by the average household, as well as the dollar outlay per garment. Third, the women’s wear industry hasn’t brought out a strong, overriding fashion statement in several years. In the past, the absolute need to change to long skirts, for example, made most wardrobes completely obsolete after one season. Nowadays, the varying dress lengths allow a woman to carry over most of the items in her closet to another season or more. Finally, the lack of significant gains in the average person’s real income and the constant publicity about job layoffs seem to have convinced many people to make their old clothing do. For these reasons, consumers in the ‘90s have become quite price conscious, and lower quality clothing brands have

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