Portfolio Strategy Assignment
This paper presents a revised portfolio strategy for Delta Airlines, Inc. as result of a large cash infusion it recently has received in the amount of $700 million.
Delta Airlines, Inc. provides schedule air transportation for passengers and cargo throughout the United States and around the world. Delta Airlines has a global route network giving is a presence in every major domestic and international market including airports in Amsterdam, Atlanta, Cincinnati, Detroit, Memphis, Minneapolis,
New York City, Paris, Salt Lake City, and Tokyo. Delta Airlines, Inc. is incorporated under the laws of the State of Delaware with principal executive offices located in Atlanta, Georgia. The company currently has a capital base of $14 billion with short-term investments totaling $958 million and long-term investments totaling $188 million. With the recent large cash infusion, the company wants to maximize wealth for the shareholders. This paper presents a revised portfolio strategy to achieve the maximization of wealth that the company wants to achieve. With the use of various debt securities and stock securities, the company should be able to capitalize on the additional investment of the $700 million in adding it to its existing short-term investments of $958 million and long-term investments of $188 million. Current Investment Portfolio As of December 31, 2011, Delta Airlines, Inc. has short-term investments totaling $958 million and long-term investments of $188 million. Short-term investments may be classified as any investments held for at least three months and no longer than one year. Long-term investments are classified as any investments held for a period longer than one year. With the recent large cash infusion that Delta Airlines, Inc. received in the amount of $700 million, the company should be able to invest the additional funds in stock and debt securities to maximize
Delta Airlines, Inc. provides schedule air transportation for passengers and cargo throughout the United States and around the world. Delta Airlines has a global route network giving is a presence in every major domestic and international market including airports in Amsterdam, Atlanta, Cincinnati, Detroit, Memphis, Minneapolis,
New York City, Paris, Salt Lake City, and Tokyo. Delta Airlines, Inc. is incorporated under the laws of the State of Delaware with principal executive offices located in Atlanta, Georgia. The company currently has a capital base of $14 billion with short-term investments totaling $958 million and long-term investments totaling $188 million. With the recent large cash infusion, the company wants to maximize wealth for the shareholders. This paper presents a revised portfolio strategy to achieve the maximization of wealth that the company wants to achieve. With the use of various debt securities and stock securities, the company should be able to capitalize on the additional investment of the $700 million in adding it to its existing short-term investments of $958 million and long-term investments of $188 million. Current Investment Portfolio As of December 31, 2011, Delta Airlines, Inc. has short-term investments totaling $958 million and long-term investments of $188 million. Short-term investments may be classified as any investments held for at least three months and no longer than one year. Long-term investments are classified as any investments held for a period longer than one year. With the recent large cash infusion that Delta Airlines, Inc. received in the amount of $700 million, the company should be able to invest the additional funds in stock and debt securities to maximize
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