American Greetings

Your report should consist of the normal case report – a brief description of the case, an explanation of the problem, alternative solutions, your recommendations, in" rel="nofollow">includin" rel="nofollow">ing materials, such as spreadsheets, needed to justify your recommendation The discussion questions are guidelin" rel="nofollow">ines about the case. As guidelin" rel="nofollow">ines you can use the questions to identify the case issues as well as respond to those issues. 1. The shares of American Greetin" rel="nofollow">ings are currently tradin" rel="nofollow">ing at an EBITDA multiple that is at the bottom of its peer group. Do you thin" rel="nofollow">ink a 3.5-times multiple is appropriate for American Greetin" rel="nofollow">ings? If not, what multiple of EBITDA do you thin" rel="nofollow">ink is justified? What is the implied share price that corresponds to that multiple? 2.Please model cash flows for American Greetin" rel="nofollow">ings for fiscal years 2012 through 2015 based on the two sets of ratios in" rel="nofollow">in case Exhibit 8. Based on the discounted cash flows associated with the forecast, what is the implied enterprise value of American Greetin" rel="nofollow">ings and the correspondin" rel="nofollow">ing share price? 3.What are the key drivers of value in" rel="nofollow">in your model? 4.What do you believe to be the value of American Greetin" rel="nofollow">ings shares? Do you recommend repurchasin" rel="nofollow">ing shares?