Conclusion: Continue Regular Activity Repurchase

The first group:

Conclusion: Continue regular activity Repurchase

Reason: Give America's economic growth rate is declining, represent the future of sustained and stable cash flows, so do not worry too much about the problem of excessive debt, ROIC and the stock repurchase is to present a positive relationship, on behalf of the company's operating performance with the with the stock repurchase is to present a positive relationship.

Summary: ROIC, the number should change too mechanical explanation, then, represents a number of changes does not mean that there are economic implications, from the equation look really average equity decline will lead to rise in ROIC, but which can not explain the economic significance is not obvious its current situation, said the company if there is no revenue for the industry on the stock repurchase alone can maintain the company's profitability and can not therefore explain its economic significance between ROIC and stock repurchases.

Group II:

Conclusion: The debt buy back

Reason: AutoZone auto parts retailer's CEO very competitive market, although not yet saturated, from the industry's top ten stores Number of fact, not rapid growth, said the auto parts retail market is already saturated. The company's debt was intended to buy back stock, so the company can use some or all of the operating cash flow to buy back debt. CAPM to estimate the share price to reward ratio and beta value, to calculate the market value of the company's estimated market value, the city found AUTOZONE stock is undervalued. Interest at the beginning of the original total liabilities divided by the original, found that the company's financing costs did not increase significantly, and therefore the case if the company uses debt to buy back, ROIC will decline