Housekeeping

This blog is slowly being reorganized. This weekend I will post the answers to the questions posed for Chapter 6 in Competition Demystified. Readers have already posted excellent analysis. The readers here far surpass the “professor.”

I will write-up study questions for the funeral case studies. If you don’t have those cases simply email: aldridge56@aol.com with FUNERAL HOMES in the subject line.

And finally, I will have new cases for Chapter 7 and 8 in Competition Demystified next week.  We must move forward.

WHY we study Strategic Logic

Valuation formula:  Earnings next year/(Cost of Capital – Perpetual Growth Rate) = Intrinsic Value.   Or $1 in earnings/(10% – 5%) = $20.00

It takes two minutes to learn how to use the formula but a lifetime to know what to plug into the formula.

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