Pullman Inc. Risks Involved With Growth Into Other Countries
Pullman, Inc., a U. S. firm, has been highly profitable, but prefers not to pay out higher dividends because its shareholders want the funds to be reinvested. It plans for large growth in several less developed countries. Pullman would like to finance the growth with local debt in the host countries of concern to reduce its exposure to country risk. Ex-plain the dilemma faced by Pullman, and offer possible solutions.