- What discount rate (weighted average cost of capital) should American Greetings use to analyze the cash flows?
- Use book value of debt as value of debt (Exhibit 45.6).
- Use market value of equity as value of equity (Exhibit 45.6).
- Use 10-year government bond yield as risk-free rate.
Welcome Soap2day x Urivers tyol lexss ko Grande x Home - my uirgvedu x 2 Group (David, Itzel, Noia- Fx Chego e escer 13 (X C Chegyver X + + chegg.com/reader/9791259252406/621/ . Ladate Search keywords 0 ... QRA EBITDA Multiple EXHIBIT 45.6 | Comparable Firms, End of 2011 (in millions of dollars except share price) Share Shares Total Total Enterprise Price Outstanding Cash Debt Value Revenue EBITDA American Greetings 12.51 38.3 86 235 714 1.660 204 Blyth 56.80 8.2 182 101 568 984 48 Consolidated Graphics 48.28 10.2 7 197 692 1,050 122 CSS Industries 19.92 9.7 10 0 194 453 30 Deluxe 22.76 50.9 31 742 1.901 1,420 359 Hallmark MA NA NA NA wa NA NA NA 4,100 NA Lancaster Colony 27.3 162 0 0 1,090 156 Meredith 32.65 44.8 26 250 1,712 1,350 240 Scholastic 29.97 31.1 114 215 1,145 1,950 189 3.5 11.7 5.6 6.5 5.3 we NA 12.2 69.34 1,890 7.1 6.0 ROA ROE Beta Bond Rating" American Greetings Blyth Consolidated Graphics CSS Industries 11% 9% 10% 29 2 55% 1.63 1.60 1.45 1.36 BB+ B BB 7% 4% 52 5% 49 * 13% NA 14% % 7% 6% Deluxe B 1.85 NA NA Hallmark Lancaster Colony Meredith Scholastic 19% % 15% 8% 0.42 0.42 1.75 1.04 BB BB- Data sources: Yahcol Finance, Standard & Poor's, Mergent "EBITDA miltiple is defined as Enterprise Value divided by EBITDA **The ratings for Cons. Graphics and Meredith are estimated by case writer. Blyth Consolidated Graphics Global marketer of candles, gourmet foods, weight management products, holiday cards, photo albums, and houseware products Provides commercial printing services in North America, including brochures, share- holder communications, trading cards, calendars, catalogs, and greeting cards Desians, produces, and sells social expression products in North America, includina CSS Industries 579 of 785 ol v Welcome Soap2day x Urivers tyol lexss ko Grande x Home - my uirgvedu x 2 Group (David, Itzel, Noia- Fx Chego e escer 13 (X C Chegyver X + + chegg.com/reader/9791259252406/621/ . Ladate Search keywords 0 ... QRA EBITDA Multiple EXHIBIT 45.6 | Comparable Firms, End of 2011 (in millions of dollars except share price) Share Shares Total Total Enterprise Price Outstanding Cash Debt Value Revenue EBITDA American Greetings 12.51 38.3 86 235 714 1.660 204 Blyth 56.80 8.2 182 101 568 984 48 Consolidated Graphics 48.28 10.2 7 197 692 1,050 122 CSS Industries 19.92 9.7 10 0 194 453 30 Deluxe 22.76 50.9 31 742 1.901 1,420 359 Hallmark MA NA NA NA wa NA NA NA 4,100 NA Lancaster Colony 27.3 162 0 0 1,090 156 Meredith 32.65 44.8 26 250 1,712 1,350 240 Scholastic 29.97 31.1 114 215 1,145 1,950 189 3.5 11.7 5.6 6.5 5.3 we NA 12.2 69.34 1,890 7.1 6.0 ROA ROE Beta Bond Rating" American Greetings Blyth Consolidated Graphics CSS Industries 11% 9% 10% 29 2 55% 1.63 1.60 1.45 1.36 BB+ B BB 7% 4% 52 5% 49 * 13% NA 14% % 7% 6% Deluxe B 1.85 NA NA Hallmark Lancaster Colony Meredith Scholastic 19% % 15% 8% 0.42 0.42 1.75 1.04 BB BB- Data sources: Yahcol Finance, Standard & Poor's, Mergent "EBITDA miltiple is defined as Enterprise Value divided by EBITDA **The ratings for Cons. Graphics and Meredith are estimated by case writer. Blyth Consolidated Graphics Global marketer of candles, gourmet foods, weight management products, holiday cards, photo albums, and houseware products Provides commercial printing services in North America, including brochures, share- holder communications, trading cards, calendars, catalogs, and greeting cards Desians, produces, and sells social expression products in North America, includina CSS Industries 579 of 785 ol v
