This case is used in the first year Finance class of Darden, but it had not been inappropriate in any class introducing business valuation. A teaching note is available for educators. This case examines the 2012 choice by American Greetings (AG), the greeting card firm, to repurchase shares.
At the period of the decision, the greeting card industry was facing a significant structural shift; AG stock was trading at valuation multiples that were the lowest among its peer group. Pupils are invited to build a simple model of the organization's future cash flows and derive an implied worth. Because the business is arguably in a state of decline or maturity, a discussion of steady-state economics is particularly germane.
PUBLICATION DATE: March 28, 2013 PRODUCT #: UV6643-HCB-ENG
This is just an excerpt. This case is about FINANCE & ACCOUNTING
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