What is going on at american greetings?
discuss the competitiveness of the industry.
discuss the factors that drive the fundamental value of american greetings.
the shares of american greetings are currently trading at an ebitda multiple that is at the bottom of its peer group. do you think a 3.5 times multiple is appropriate for american greetings? if not, what multiple of ebitda do you think is justified? what is the implied share price that corresponds to that multiple?
model cash flows for american greetings for fiscal years 2012 through 2015. using a marginal tax rate of 40% and a market risk premium of 5%, what is your estimate of the appropriate discount rate for the free cash flow forecast? based on a discounted cash flow model, what is your best estimate of the implied enterprise value of american greetings and the corresponding share price?
what are the key drivers of value in your model? do you recommend repurchasing shares?

Ms. sophia jones, the company president, has heard that there are multiple breakeven points for every product. she does not believe this and has asked you to provide the evidence of such a possibility. some information about the company for 2017 is as follows:

Suppose a firm faces a fixed price of output, 푝푝= 1200. the firm hires workers from a union at a daily wage, 푤푤, to produce output according to the production function 푞푞= 2퐸퐸12. there are 225 workers in the union. any union worker who does not work for this firm is guaranteed to find nonunion employment at a wage of $96 per day. a.what is the firm’s labor demand function? b.if the firm is allowed to choose 푤푤, but then the union decides how many workers to provide (up to 225) at that wage, what wage will the firm set? how many workers will the union provide? what is the firm’s output and profit? what is the total income of the 225 union workers? c.now suppose that the union sets the wage, but the firm decides how many workers to hire at that wage (up to 225). what wage will the union set to maximize the total income of all 225 workers? how many workers will the firm hire? what is the firm’s output and profit? what is the total income of the 225 union workers? [hint: to maximize total income of union, take the first order condition with respect to w and set equal to 0.]

About 20 years ago, sturdy light, inc., produced a sturdy, lightweight backpack in a market that was rapidly growing. sturdy light became a leader in this market. eventually, the backpack market reached the maturity stage and slowed down. however, by this time, sturdy light had developed a strong brand name and continued to steadily lead the market. which of the following describes this scenario? a. sturdy light was a star that developed into a cash cow. b. sturdy light was a question mark that developed into a star. c. sturdy light was a dog that developed into a question mark. d. sturdy light was a cash cow that developed into a star.