1. What is going on at American Greetings?
   1. Discuss the competitiveness of the industry.
   2. Discuss the factors that drive the fundamental value of American Greetings.
2. The shares of American Greetings are currently trading at an EBITDA multiple that is at the bottom of its peer group. Do you think a 3.5 times multiple is appropriate for American Greetings? If yes, why? If not, why not? Whether you think it is appropriate or not what alternative multiple of EBITDA do you think could be used and why? What is the implied share price that corresponds to that multiple?

3. Please model cash flows for American Greetings for fiscal years 2012 through 2015. Using a marginal tax rate of 40% and a market risk premium of 5%. What is your estimate of the appropriate discount rate for the free cash flow forecast? Based on a discounted cash flow model, what is your best estimate of the implied enterprise value of American Greetings and the corresponding share price? Discuss your results and the implications for the decision facing American Greetings.

4. What are the key drivers of value in your model and why? Do you recommend repurchasing shares? Provide specific reasons to support your recommendation.