Francisco Icasiano Essays

Sonia Essay

1289 WordsNov 5th, 20156 Pages

Sonia Zahid
Case 43
October 28, 2015
American Greetings
Should American Greetings Repurchase its Shares?

1. Is 3.5x multiple appropriate for American Greetings? If not, what multiple of EBITDA to think is justified?
Based on the information provided, I believe that the EBITDA Multiple of 3.5x is not justified.
EBITDA Mutiple (or EV/EBITDA) is a better measure than P/E ratio because it is not affected by the changes in capital structure between debt and equity. And for this reason it also makes fair comparison to companies with different capital structures. It is also a pre-tax metric making it easier to compare across different companies preferably in the same industry. This metric is preferred over P/E ratio since it is not affected by…show more content…

Since the EBITDA multiple of American Greeting is lower than its peers, this is also gives an indication that the stock is undervalued.

What is the implied share price that corresponds to that multiple?
Implied share Price:
EBITDA– Dividends Paid/Shares outstanding
$200.58mill – (3.32mill x 60 cents per share) / 3.32mill = $59.82 implied share price

2. Enterprise Value is examined Below based on model cash flow from 2012-2016

EBITDA
Multiple
3.08
7.97
7.54
5.59
6.16
5.21
8.82
11.11
12.14
7.62
7.03
1.92
5.45
9.66
8.41

Projected Cash Flow

(in Mill except for EPS)

2012

2013

2014

2015

TV
2016

Total American Greetings Figures
Total Revenue
Material, Labor, and Other Pruduction Costs
Selling, Distribution, and Marketing Expenses
Administrative and General Expenses
Goodwill and Other Intangible Asset Impairments
Other operating expenses

1,613
714
531
258
0
-6

1551
687
510
258
0
-6

1491
660
491
258
0
-5

1434
635
472
258
0
-5

1378
610
454
258
0
-5

115
27

101
26

87
25

74
24

61
23

Income Before Income Tax Expense

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The Will of the River -Alfredo Gonzales Jr.; Sonia Francisco Icasiano;

3383 WordsJul 5th, 201214 Pages

The Will of the River -Alfredo Gonzales Jr. BY MY WIFE’S ancestral home flows a river. For a dozen summers I have visited it, and almost every year I make an effort to trace its course back to its source in the neighboring hills; I do not consider my vacation there complete without doing this. In common with other streams of its kind, our river suffers much from the summer drought. I have seen it so shrunken that fish lay lifeless on the parched sand and gravel of its bed. But this past summer I saw something I had never seen before, though I know that if I had been sufficiently observant in other abnormally dry years, I am sure I could not have failed to notice the same thing earlier.
2 One morning last April, in company with a student…show more content…

9 On the other hand, think of other lives that, like our river, kept their way even to the end of their course.
10 I believe it was on our way back from the hills that the lesson of faithfulness in the performance of one’s duty was forcefully suggested to me. The truth occurred to me that nature often fulfills her duty more faithfully than man does his.
11 And what is the duty of a river? It is to furnish safe running water for plant and fish and fowl and for man and beast. The river is not there just to flow on and enjoy itself. The river must play its part in the processes of nature; to live, in other words, for the rest of creation.
12 And so it should be with the life of man. It is not to be lived unto itself alone for its own joy and satisfaction but for others in glad and devoted ministry. How life and beauty and goodness, indeed, would perish from the world if man and nature should fail in their duty! If our river had not remained faithful to its duty, instead of a landscape picturesque with the varied green of the foliage of shrubs and trees and gay with the voices of the birds singing and calling to one another in the branches that April morning, there would have been spread before us a wide expanse of desolate and lifeless land, fit only for the wanderings of Cain.
13 For part of the ministering duty of a river is to flow on and on, otherwise be foul and unfit for use. There is music in running water. Bacong, by

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