Below you will find the information for Pioneer Aviation. Pioneer Aviation has a dividend that will grow at a constant rate indefinitely. Use this to complete the box on the next page.

A-Complete the box. For the intrinsic value use the dividend discount model (DDM)

B-Analyze the information you have . Do you think this company is in position to meet the parameters illustrated by Warren Buffett?

C-At least in theory, does it matter whether or not a company does a repurchase or a buyback?

Sales	$1,250,000
Cost of Goods Sold	$825,000
Gross Profit	$425,000
Selling & Administrative	$310,000
Depreciation	$28,000
EBIT	$87,000
Interest Expense	$4,000
Taxable Income	$83,000
Taxes	$17,430
Net Income	$65,570
Shares Outstanding	100,000
Cash (Before dividend or repurchase)	$138,000		Accounts Payable	$135,000
Accounts Receivable	$24,000		Notes Payable	$50,000
Inventory	$150,000		Current Liabilities	$185,000
Current Assets	$312,000		Long-Term Debt	$200,000
Fixed Assets	$500,000		Total Liabilities	$385,000
			Equity	$427,000
Total Assets	$812,000		Total L/E	$812,000
Dividend per share	$0.50
Excess Cash - used for dividend or repurchase	$50,000.00
Repurchase
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EPS after Repurchase
PE after Repurchase
Investor Value per Share
Dividend
New Prices
Shares after Dividend
EPS after Dividend
PE after Dividend
Investor Value per Share