...Tyler Reames October 14, 2013 American Greetings Executive Summary – FIN 3717 Executive Summary American Greetings is the second largest greeting card publisher in the U.S., behind Hallmark. The company is involved in retail and online sales. Hallmark is the main competition for American Greetings. In recent years, social media has caused a decline in the greeting card industry. Both American Greetings and Hallmark have begun creating electronic cards to take advantage of the digital revolution. Problem By the end of 2012, American Greetings was at the bottom of its peer group, with a low EV-EBITDA multiple, market-to-book below 1, a 6x PE ratio, and a share price of $12.51 that had dropped significantly in the months prior. American Greetings has historically used a share repurchase strategy in times of low equity. This is a good defense if the stock price is down temporarily, but the low valuation could also be a sign of larger trouble where it would be wise to preserve cash. Both S&P and Value Line anticipated modest growth for American Greetings in the coming years. Analysis We conducted an analysis for 2012 through 2015 to determine the value of the company. Our analysis began with calculating the operating cash flows (OCF = operating income * (1 – 0.4) - ∆NWC): Operating Cash Flow (millions) 2011 118 2012 83 2013 86 2014 88 2015 91 Operating Cash Flow (millions) 2011 118 2012 83 2013 86 2014 88 2015...
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...Chandler Loupe Oct. 13th, 2013 FIN 3717 Stephens American Greetings- Executive Summary On a warm New Years day in Cleveland, American Greetings management was reviewing its stock’s recent downward trend of being cut in half over the past several months. When faced with situations of low equity valuation, AG’s management team normally opted to buyback; and given the circumstances, they were considering a $75 million repurchase program. As the second largest greeting card publisher, they positioned themselves as a leader in social expression products through a number of new business facets such as: electronically selling greetings, owning a number of different brands aside from AG, and licensing popular characters they owned the rights to. Problem The biggest issue facing the company was the overall decline in the greeting card industry. Industry analysts had concluded that their market had contracted by 9% since 2005, and that the trend would continue. The Mintel industry analyst firm had a best-case scenario of a 4% decline over the next four years, and a worst-case scenario of 16%. Analysis Although their market appears to be at a steady decline, their 2011 fiscal year shows a few signs of improvement. As seen in Exhibit 2, their international social expression products net sales increased by 31%, greeting cards by 9%, and gift packaging by 7%. Aside from small gains in revenue, their weighted average cost of capital has been fairly steady the past 3 years. By using...
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...American Greetings Exec Summary Tyler Reames October 14, 2013 American Greetings Executive Summary – FIN 3717 Executive Summary American Greetings is the second largest greeting card publisher in the U.S., behind Hallmark. The company is involved in retail and online sales. Hallmark is the main competition for American Greetings. In recent years, social media has caused a decline in the greeting card industry. Both American Greetings and Hallmark have begun creating electronic cards to take advantage of the digital revolution. Problem By the end of 2012, American Greetings was at the bottom of its peer group, with a low EV-EBITDA multiple, market-to-book below 1, a 6x PE ratio, and a share price of $12.51 that had dropped significantly in the months prior. American Greetings has historically used a share repurchase strategy in times of low equity. This is a good defense if the stock price is down temporarily, but the low valuation could also be a sign of larger trouble where it would be wise to preserve cash. Both S&P and Value Line anticipated modest growth for American Greetings in the coming years. Analysis We conducted an analysis for 2012 through 2015 to determine the value of the company. Our analysis began with calculating the operating cash flows (OCF = operating income * (1 – 0.4) - ∆NWC): Operating Cash Flow (millions) 2011 118 2012 83 2013 86 2014 88 2015 91 Operating Cash Flow (millions) 2011 118 2012 83 2013...
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...TENTANG AMERICAN GREETINGS Pada awal tahun 2012, suhu udara vukup hangat di Claveland, Ohio, kantor pusat American Greeting. Tetapi, sekalipun suhu udara mulai menghangat, harga saham American greeting mengalami penurunan. Dalam beberapa bulan terakhir, harga pasar saham perusahaan ini mengamali penurunan hingga di level $12.51. Manajemen American Greeting berencana untuk melakukan share buyback. Dengan current valuation, manajemen berencana untuk membeli ssaham mereka kembali dengan total pembelian sebesar $75. 000.000. keputusan yang diambil bergantung pada expected masa yang akan datang. Hallmark adalah kompetisi utama untuk American Greetings. Dalam beberapa tahun terakhir, media sosial telah memberitakan penurunan dalam industri kartu ucapan. Kedua American Greetings dan Hallmark telah mulai membuat kartu elektronik untuk mengambil keuntungan dari revolusi digital. Pada akhir 2012, American Greetings berada di bawah kelompok yang sama, dengan kelipatan rendah EV-EBITDA, market-to-book di bawah 1, rasio 6x PE, dan harga saham dari $ 12,51 yang telah turun secara signifikan dalam bulan sebelumnya. American Greetings secara historis menggunakan strategi pembelian kembali saham pada saat ekuitas rendah. Ini adalah cara yang baik jika harga saham turun sementara, tetapi valuasi rendah juga bisa menjadi tanda dari masalah yang lebih besar di mana akan lebih baik untuk menggunakan cash. Kedua S & P dan Value Line mengantisipasi pertumbuhan moderat untuk American Greetings...
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...American Greetings Question 1: 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? * First I calculated the market value of common equity by multiplying the share price to the shares outstanding. * And to get the Enterprise Value, I added MV of common equity and total debt, then subtracting total cash. * Lastly, I divided enterprise value from EBITDA to achieve my multiple. * Therefore, multiple of 3.5 is fair for American Greetings. Question 2: Please 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? * American Greetings’ sales growth would be steady at 1.5% and their operating margin would be maintained at 8%. With a discount rate of 8.49%, the present value of the company is $1041 and has a stock price of $20.94. Question 3: What are THE KEY DRIVERS OF VALUE IN YOUR MODEL * The key drivers of value in my models are the free cash flow forecasts, the weighted...
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...The decision to be made in this case is whether or not to repurchase shares in the market and that decision would be based on determining the intrinsic value of the shares and comparing that to the market price. If the shares are really worth more than what they are selling for in the market, the repurchase makes sense.This case will require that you build a cash flow forecast similar to the one that you did for the Aurora case so look back at the Excel template. Build your forecast out to the end of the 2015 fiscal year and then project a "steady state" forecast for 2016 which you will need to calculate a terminal value. Calculating the value of the enterprise involves a couple of steps. First, calculate the present value of the forecast cash flows up to and including 2015. Then use the constant growth model to calculate the value of all cash flows from 2016 onwards. Review previous cases and notes, as well as case 42 in Bruner, to figure out how to do that. Obviously you can't do your valuation calculations without a WACC and that will be one of the challenges in the case. You have what you need to calculate kd and ke, as well as to weight them to get WACC so see what you can do. Use the CAPM to come up with your cost of equity, and use 5% as the equity market premium for this case. Once you have valued the cash flows and the terminal value, you end up with the value of the entire enterprise. Subtract the debt to get the value of equity, divide by number of common shares outstanding...
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...Patrick G. Johnson Foundations of Western Civilizations Professor McCahill September 10th, 2013 In the document "Pericles' Funeral Oration" Pericles discusses many things regarding the past and current Athenian lifestyle. He covers many topics involving their citizens' welfare, military strength, as well as their excellent wealth of knowledge but Pericles' speech is intended to act as a eulogy. He accomplishes that as well as he speaks to the audience conveying many things they should be grateful for besides the duty of their deceased soldiers. The many things that Pericles' talks on often include the wonderful lifestyle the Athenians enjoy and that the many freedoms they are offered did not come without sacrifice. Pericles' purpose in this eulogy is to convey to the audience that the many perks that are offered while being an Athenian are maintained by the duty of its soldiers. Pericles goes throughout his eulogy stating the many priveleges that Athens provides for its citizens. Ranging from its entertainment, strong military, freedom of business, fair law system, and abundance of knowledge. He exclaims, "Nor are these the only points in which our city is worthy of admiration. We cultivate refinement without extravagance and knowledge without effeminacy; wealth we employ more for use than for show" (Pericles, p.2) . Pericles' explains that the wealth that the citizens are privy to is not just an extravagant show. It was earned by the people and to be used by the people...
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...Culture Project | U.S. | Germany | Greeting | In the U.S., when you greet another person, you can typically offer a handshake. This is a very common form of greeting. There are some instances where you may be meeting a friend of a friend or a family member of your friend where they will ask for a hug, but is not seen very often. Hugs are typically reserved for family or feminine friends while kisses are reserved for couples. Eye contact is also a sign of respect. Avoiding eye contact usually shows weakness, timidness, or even a lack of self-esteem.www.nativeforeignermag.com/2012/06/4-ways-to-greet-an-american/ | The German culture actually has very few differences when it comes to greetings. You can’t really go wrong with a firm handshake and good eye contact. The biggest difference between the two cultures comes between hugs and kisses. Most German men consider hugs too feminine whereas some males in the U.S. could turn a handshake or “fist bump” into a brief hug with a pat on the back. Kisses are very unusual in Germany. Kisses are almost always reserved for people VERY fond of you.German.about.com/od/vocabularytips/a/Learn-German-Greetings.htm | Homes | In the U.S. many people are pretty open and this is even seen in your home. Many homes are designed in an open way and often without many doors. Typically the only time you find doors closed in an American home is when they want privacy in the bathroom or bedroom. In some U.S. households, your street shoes are taken off...
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...interacted with people whose experiences and/or beliefs differ from yours. Address your initial feelings, and how those feelings were or were not changed by this experience. This past summer I was blessed with the opportunity to go on a mission trip to New York City. Our mission in the morning was to help teach English Second Language class that was located in the Muslim community. I was very nervous going into the start of the trip because I was unfamiliar with the Muslim culture and had no clue as to how they would react being taught by Christian’s who also were attempting to spread Christianity to them. Much to my surprise the students of the class were extremely kind to us. They all greeted us with the American handshake and hello as well as a traditional formal greeting commonly practiced in the Muslim culture. The students were very attentive during class making it clear they were eager to learn the English language. Many of the students had been attending the class for several months to a few years, and wanted to do nothing more than stay and chat. They were all men from the ages of 30 to even 67, several of whom had doctorates in fields such as physics and chemistry and decided to quiz our skills in the subjects and were quite disappointed that we didn’t know a lot of information that to them in their home countries was considered basic knowledge. With their hospitality and friendliness my hesitant attitude quickly was diminished and I quickly became intrigued to learn...
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...initial stages of courting, for welcoming children returning home, as well as toward a patient undergoing a curing ritual. When a stranger comes to their house none speak to him, or ask him any questions, till he thinks fit to speak. Senegal exchanging greetings each time you meet someone, even if it is later in the same day, it is important to maintaining good relationships. The greeting must include an introduction followed by recitation of ones full name several times to honor family and ancestors. You are expected to exchange lengthy inquiries into the health and well being of the other person and their family before asking any other question or beginning a discussion, It is customary for these questions to be asked over a prolonged handshake. It is important not to rush the greeting process since your goal is to be considered a friend so that business is a possibility.The Senegalese tend to lower their gaze while conversing, especially when speaking with someone senior to themselves in age or position .To the Western mind the amount of time spent in greetings may appear unnecessary or even wasteful especially in business, they are used by the Senegalese to feel one with each other and achieve a sense of group harmony. Anglo Americans tend to consider their personal goals over group goals because they are generally goal and future oriented. To prepare and save for the future is a common...
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...man or a very cruel person, makes no difference. This particular passage would fall under the Hermeneutical guideline of a non-moral or non-theological situation, command, or principle which pertains to an individual’s specific circumstance that has been revoked or is no longer applicable to people in my culture. This is the compatible guideline with this passage due to the fact that slavery has been abolished and found to be illegal and indecent in the United States for quite some time. The Civil war brought about the turning point in which the government made the ownership of slaves illegal. Because slavery is now illegal, there is no principle base on which to establish a worthy context for that particular passage to relate to the American culture of today. The only other take on this passage is to research the original words used and in doing so one can see that in some versions the translation of slaves is actually commoners, and the translation of masters is actually to head of house. If this were the case, Peter was extending word to the people that were to deal with the hardships placed upon them with faith, because eventually through God they would be set free. The second passage of 1 Timothy 2:12 also falls under the guideline of a non-moral or non-theological situation, command, or principle which pertains to an individual’s specific circumstance that has been revoked or is no longer applicable to people in my culture. For a very long time women were held in...
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...since arriving but then realize that the ticket guy is not really interested in a long answer, he is just waiting to sell them tickets. This is interesting because we have been taught that in Germany “How are you?” is a question that is really asking for a genuine answer, good or bad, and in the US the expected answer is a short “good” or “good, how are you?” in most casual situations. In the US, “how are you” is a polite phrase to say to strangers that adds some warmth to a greeting without prying for detail that might make anyone uncomfortable. Americans are supposedly more open to conversation and making conversation with strangers than they may be in Germany. Therefore, it is interesting that the East Germans in the movie are comfortable to share so much information so readily with a stranger in New York. I now wonder if people in Germany only ask, “How are you?” to close friends and not really to casual acquaintances in order to avoid sharing or hearing too much information? Although this American cultural difference is proven to be true in many casual situations, I find this situation especially true in a city like New York and less true in smaller towns like Houghton. For example, I’m always surprised when I meet someone who is from Europe that has only visited the US once and did not enjoy the experience based on the ‘cold feeling’ they get from the people in New York. While it is never pleasant to feel this, New York is a large city and people live differently there...
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...HYSTERICAL BLINDNESS Hysterical Blindness ENG 090 05/10/2012 Wednesdays were always the day to meet with Charles (Chuck) Griffin, take the dogs for a walk, and get a cup of coffee from the Deer Perk coffee shop located in Deer Park, Texas. Chuck was a bold character, never backing down from an opportunity to bring a smile to the faces of his friends and family. Every week, I met Chuck outside the gated, community east of Houston, Texas. We shared a comedic greeting, usually at my expense, regarding haircut, eyeglasses, or clothing and gingerly began our walk towards the soccer, fields located behind a group of shops smartly placed to attract patrons of the sporting events which occurred regularly. Our walks were always filled with laughter about current events, coworkers, or politicians. Two to three hundred feet from the park, our energy filled canines would started to show their excitement as they anticipated our destination and the activities always afforded them by this midweek rendezvous. Frisbees always began flying well before we arrived at the center of the soccer fields. Dogs came off the leashes and bolted in the direction towards those floating discs, always wanting to be the first to sink their teeth into what we thought must be the best tasting plastic around. Chuck’s dog (Sam), more often the winner with the longer legs and the more muscular of the two, always held his head high as he trotted back towards his master, looking like...
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...Beginner Tests New English Course Julia Starr Keddle 2 New Headway Beginner Test Booklet Note to the teacher This booklet contains • 14 Unit Tests which revise the corresponding units in New Headway Beginner Student’s Book. There are two versions (A and B) of each test. They cover the same material, but have been reorganized to allow easier administration of the tests in the classroom. Each test has a total score of 100. • optional free-writing exercises. • optional listening exercises using the recordings from the Student’s Book. • an Answer key for all the exercises. These tests may be photocopied freely for classroom use. They may not be adapted, printed, or sold without the permission of Oxford University Press. 1 Conversation 1 B Ben. 1 a Your Conversation 2 NAME: Test A 3 Complete the sentences. Use am, is, or are. is 1 This ________ James. 1 Complete the conversations. Circle the correct letter. A Hello, (1) ________ name’s Anna. What’s your name? 2 Hello. I ________ Sandra. 3 How ________ you? 4 My name ________ Tariq. 5 What ________ your name? 6 It ________ a photo. 4 points for each correct answer b My c You d I A Hi, Carla. (2) ________ are you? B Fine, thanks. And you? A OK, (3) ________ . 2 a Hello 3 a hello Conversation 3 A What’s (4) ________ in English? B (5) ________ ’s a book. 4 a my 5 a A Conversation 4 A Pierre, this is Yukio. Yukio, (6) ________ Pierre. B Hello, Pierre. A Hello, Yukio. 6 a this is ...
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...PRACTICE LISTENING TEST ONE Narrator: Listening Test One. This is a practice listening test which resembles the International English Language Testing System Listening Test. The test consists of four sections. Answer the questions as you listen to the recording. Note that the recording is played once only. Please turn to Section 1. Section 1 Narrator: Section 1. George and Lisa are overseas students studying in Britain. They are returning home for the summer holidays. Look at the Example and Questions 1 to 4. (10 second pause) For each of the questions four pictures are given. Decide which picture is the best match with what you hear on the tape, and circle the letter under that picture. First, you have some time to look more carefully at Questions 1 to 4. (10 second pause) Now listen to the following conversations, and answer Questions 1 to 4. Taxi Driver: That'll be £23. Right. There's your change. Have a nice trip. Oh, I'll just get your bags out of the boot. Lisa: Thank you very much. Now, George, let's find the check-in desk. George: Yes, but with all the changes they have made here at the airport, I'm not sure where the check-in desk is. Lisa: Iknow. It's strangeisn'tit? Why don'tweaskforhelp? George: Good idea. What about that man sitting down over there? Lisa: Which one? The one with the hat on? George: But what about the man with the blue uniform and the cap sitting on the trolley? He's bound to know. He looks like he works here. Lisa: OK, I'll ask him. Excuse...
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