Walgreens: the Corporate Financial Decision Making Analysis

Walgreens: The Corporate Financial Decision Making Analysis Walgreens head word activity is to operate a chain of retail drugstores that sells prescription(prenominal) and nonprescription drugs. The company also carries additional product lines worry general merchandise including cosmetics, food, beverages and photofinishing. Walgreens is one of the fastest growing retailers in the United States and led the chain drugstore industry in retail sales and profits last year. The capital organize of this retail drugstore is determined by 42,5% Debt and 57,50% Equity collectible to $8.239 of the total debt and $11,104,30 of Equity resulting in $19,313.60 of Total Liabilities and Shareholders Equity for 2007. Among the chief(prenominal) debt-financing sources, Walgreens has different letter of cites standing since 2006 to guarantee outside trade purchases, payments of casualty claims as well as surgical process of construction contracts. The letters of credits for payments of casualty claims are each year renewable and until the casualty claims are paid in full, they exponent remain in place. In addition, short-term debt was acquired to finance the imply of capital.

According to Walgreens Notes to Consolidated Financial Statement, the company issued commercial paper to support working capital needs and furthermore, in corporation with the purchase of Option Care, Inc. and affiliated companies, $146.8 million of convertible debt was acquired. More all over, Walgreens has lines of credit that total $1.2 billion. The first $600 million facility expires on idealistic 12, 2008, the second on August 12, 2012. Walgreens has a stock requital plan that gives non-executive employees the opportunity to purchase common stock over a ten-year period upon the purchase of company shares, subject to veritable restrictions. The share-buy-procedure is through cash purchase or loans made by eligible employees. On the other hand, the companys strategy is to be the nations most convenient healthcare provider, that... If you want to return a full essay, order it on our website: Orderessay

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