Case 30 Assignment

1. Who are Autozones closest competitors? In your opinion, how does Autozone compare as a

retail business to these competitors?

2. In 2007 Autozone

had a negative balance in its Retained Earnings and Shareholders Equity

accounts. Is this an indication that the firms long term survival is at stake? Should they place a

priority on improving the negative positions in these 2 accounts? Explain.

3.

Do you believe that Autozones shareholders were indifferent between the stock repurchase

plan and a consistent dividend? Which would you prefer? Explain.

4. If it turns out that Autozone will no longer use its cash flows for its share repurchase progra

m,

how should the firm use its cash flows?

5. Should Johnson continue to hold Autozone shares for his portfolio? Expla