1. Who are Autozone’s 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 Shareholder’s Equity accounts. Is this an indication that the firm’s 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 Autozone’s 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 program, how should the firm use its cash flows?

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