Questions: Stock and Dell
Dell’ s Working Capital
Assignment 1
Questions to assignment
1. How Dell was’s working capital policy a competitive advantage?
2. How did Dell fund its 52% growth in 1996?
3. Assume Dell’s sales will grow 50% in 1997, how might the company fund this growth internally? How much would working capital need to be reduced and/or profit margin increased? What step do you recommend the company take?
4. How would your answer to question 3 changes if Dell also purchased $ 500 million of common stock in 1997 and repaid its long term debt?
Dell’ s Working Capital
Assignment 1
Questions to assignment
1. How Dell was’s working capital policy a competitive advantage?
2. How did Dell fund its 52% growth in 1996?
3. Assume Dell’s sales will grow 50% in 1997, how might the company fund this growth internally? How much would working capital need to be reduced and/or profit margin increased? What step do you recommend the company take?
4. How would your answer to question 3 changes if Dell also purchased $ 500 million of common stock in 1997 and repaid its long term debt?
Dell’ s Working Capital
Assignment 1
Questions to assignment
1. How Dell was’s working capital policy a competitive advantage?
2. How did Dell fund its 52% growth in 1996?
3. Assume Dell’s sales will grow 50% in 1997, how might the company fund this growth internally? How much would working capital need to be reduced and/or profit margin increased? What step do you recommend the company take?
4. How would your answer to question 3 changes if Dell also purchased $ 500 million of common stock in 1997 and repaid its long term debt?
Dell’ s Working Capital
Assignment 1
Questions to assignment
1. How Dell was’s working capital policy a competitive advantage?
2. How did Dell fund its 52% growth in 1996?
3. Assume Dell’s sales will grow 50% in 1997, how might the company fund this growth internally? How much would working capital need to be reduced and/or
Assignment 1
Questions to assignment
1. How Dell was’s working capital policy a competitive advantage?
2. How did Dell fund its 52% growth in 1996?
3. Assume Dell’s sales will grow 50% in 1997, how might the company fund this growth internally? How much would working capital need to be reduced and/or profit margin increased? What step do you recommend the company take?
4. How would your answer to question 3 changes if Dell also purchased $ 500 million of common stock in 1997 and repaid its long term debt?
Dell’ s Working Capital
Assignment 1
Questions to assignment
1. How Dell was’s working capital policy a competitive advantage?
2. How did Dell fund its 52% growth in 1996?
3. Assume Dell’s sales will grow 50% in 1997, how might the company fund this growth internally? How much would working capital need to be reduced and/or profit margin increased? What step do you recommend the company take?
4. How would your answer to question 3 changes if Dell also purchased $ 500 million of common stock in 1997 and repaid its long term debt?
Dell’ s Working Capital
Assignment 1
Questions to assignment
1. How Dell was’s working capital policy a competitive advantage?
2. How did Dell fund its 52% growth in 1996?
3. Assume Dell’s sales will grow 50% in 1997, how might the company fund this growth internally? How much would working capital need to be reduced and/or profit margin increased? What step do you recommend the company take?
4. How would your answer to question 3 changes if Dell also purchased $ 500 million of common stock in 1997 and repaid its long term debt?
Dell’ s Working Capital
Assignment 1
Questions to assignment
1. How Dell was’s working capital policy a competitive advantage?
2. How did Dell fund its 52% growth in 1996?
3. Assume Dell’s sales will grow 50% in 1997, how might the company fund this growth internally? How much would working capital need to be reduced and/or