string(95) ‘ return on investment improvement program, initiated in 75, accelerated the income growth\. ‘
Harvard Business University 9-282-042 Rev. September 12-15, 1986 Marriott Corporation The thought of repurchasing stocks was no new person to Invoice Marriott by simply January 80. Almost five million stocks and shares of common stock have been repurchased in the marketplace by Marriott Corporation during 1979 in a total cost of $74 , 000, 000 and a normal price of $15.
sixteen in the idea that they had been undervalued”a idea that continue to was not totally reflected available in the market price. For $19 5/8, the share was offering at only 6 times earnings per discuss, and its price/earnings ratio of nine was a far cry from traditional multiples up to fifty times as recently as 1973.
Its low cost seemed to offer once again an obvious opportunity to profit shareholders. Nevertheless , the pitch to repurchase 10 , 000, 000 of the 32 million nonetheless outstanding stocks and shares aroused several uneasiness. In the event successful, it had the potential of boosting Marriott’s EPS and of raising family and management control coming from 20% to 29% of outstanding shares. However , this represented a move that was almost entirely financial”one that would work the debt well above the levels advocated prior to the Board of Directors only two years previously.
The repurchase would likewise necessitate renegotiation of restrictive covenants in existing financial loan agreements. Finally, the huge size of the suggested program would require a young price of $23 1/2, a large premium of $4 in the current market value. All of this appeared somewhat away of persona for a organization known for extreme care and stableness. Background Marriott Corporation opened as a nine-seat A Main Beer Wait in Washington, D. C., in 1927 by J. Willard Marriott. Mister.
Marriott a new gift to get anticipating, or perhaps helping to create, trends in public places eating habits. Shortly after the initially stand opened up, a second was built, and soon a series of Sizzling Shoppes was underway. In 1934, industrial cafeterias were opened at a General Motor plant in Georgia with the Ford Motor Organization plant in Virginia. In 1937, the airline market was totally changed when Mister. Marriott proven an flight catering support, providing package lunches from a Sizzling Shoppe following to the old Hoover Airport terminal, on the site of what is right now the Government. Seven years later, Mr.
Marriott led the company in the hotel field, opening the Marriott Twin Bridges approximately the Potomac River from Washington. It became known as a motor-hotel and helped to revolutionise the hotels industry, because of it offered a drive-in enrollment desk, a restaurant around the premises, and a conference center. Simply by 1964, there were 77 eating places, 4 accommodations, and being unfaithful, 600 employees generating total sales of $85 million. This case was prepared to get class discussion rather than to illustrate either effective or useless handling of the administrative scenario.
Copyright 1981 by President and Fellows of Harvard College or university. To buy copies or perhaps request agreement to replicate materials, call up 1-800-545-7685, write Harvard Business School Submitting, Boston, MUM 02163, or go to http://www. hbsp. harvard. edu. Not any part of this publication might be reproduced, kept in a retrieval system, utilized in a schedule, or sent in any contact form or by simply any means”electronic, mechanical, copying, recording, or perhaps otherwise”without the permission of Harvard Business School. one particular 282-042 Marriott Corporation
Expenses Marriott presumed the obama administration from his father in 1964 and initiated additional diversification in theme theme parks, cruise ships and international number services. In 1967 the organization acquired the Big Boy Eating places franchise based in the Oregon area. One year later, Marriott opened up its first Roy Rogers Roast Beef Sandwich store, which would grow into the Roy Rogers Family Cafe chain. As 1964, development was little short of extraordinary. From revenue of $85 million of sixteen years earlier, sales in 1979 exceeded $1. 5 billion.
Operations broadened to 476 company-operated eating places, 55 hotels and places, a cruise ship line, two theme parks, and 66, 000 personnel. (See Exhibit 1 for financial information about Marriott’s various businesses. ) Hotels (35% of sales)”Marriott Hotels was one of the planet’s leading and many successful operators of resorts and areas. By 1980, more than twenty-three, 000 areas were offered through fifty five hotels and resorts located primarily in the U. S i9000. Approximately 70% of company-operated rooms were owned simply by outside buyers and handled by Marriott under deals averaging seventy years long.
These administration agreements added approximately $40 million to operating revenue in 1979″profits that maintained to rise with inflation. Deal Food Services (32% of sales)”Marriott managed almost 300 contract meals units, offering a wide range of meals service features to a selection of clients. It absolutely was the world’s leading dealer of providing services to airlines, with 62 flight kitchens serving domestic and international air flow travelers. The foodstuff Service Management Division as well managed restaurants, cafeterias, seminar centers and other facilities for over 200 clientele, including organization, health care, and academic institutions.
Eating places (25% of sales)”Marriott’s Restaurant Group contained 476 company-owned units supplying a variety of commonly priced food in 46 states. Roy Rogers junk food restaurants and massive Boy coffee shops made up 92% in the total products. Theme Recreational areas and Cruise liners (8% of sales)”The two Great America theme theme parks, located in Gurnee, Illinois, between Chicago and, Milwaukee, and Santa Clara, California, had been opened in 1976. The two parks mixed a wide variety of joy and relatives rides, live musical shows and stage shows, arcades and games, merchandise and food.
The attractions had been set in five authentically recreated areas of America’s past and also have strong charm for the entire family members. The Sun Line fleet, composed of three boats, offered extravagance sailing in both the Aegean/Mediterranean and Carribbean cruise marketplaces, and was widely recognized since the leader in quality inside the Aegean market. Past Performance Marriott acquired always been a strong performer in profit terms. Over the entire 25 years ended 1979, there are only two down years and only three other years in which revenue per talk about grew for less than a 15% rate.
Income doubled usually every three or four years. A major return on investment improvement program, started in 75, accelerated the income growth.
The shift inside the hotel strategy reflected management’s belief that its relative advantage is at hotel development and supervision, and not in long-term hotel ownership. two Marriott Firm 282-042 The results were dramatic. Net income being a percentage of sales went up from a few. 1% to 4. 7%. The company’s go back on average value improved coming from 9. 5% in 1975 to 17. 0% in 1979. Earnings every share soared from 69? to $1. 95. (See Exhibit a couple of for a summary of Marriott’s historical functionality. ) Profitability”An Elusive Idea
While the trend in profitability seemed clear and encouraging, using the level was a matter of debate and concern for Marriott, as well as for American business generally. Double-digit inflation cast concerns on the performance of figures based on historical costs, and the Financial Accounting Standards Table (FASB) just lately issued guidelines which essential firms to provide, beginning in 1979, supplemental financial information that reflects the consequence of general pumpiing. Marriott though they reported these adjustments as essential by Economical Accounting Standards No . a few felt the numbers had been misleading simply because only modified for standard inflation. Marriott also reported a second approach to adjusting to get inflation that they can called Current Value and which they discussed in the annual report: The Financial Accounting Standards Board has recently tackled the problem of economic reporting during inflationary periods. However , every industry and company is definitely impacted differently by inflation and the choice of measurement must reflect the particular situation. Current Value is the best method for monitoring Marriott’s financial performance, and it differs from both historic costs or the present FASB explanation.
According to Current Benefit accounting, the importance of shareholders’ collateral increased by simply $125 million in 1979 exclusively, and the maximize would have recently been $199 mil more if not for the $74 mil share repurchase. (See Display 3 for Current Benefit Figures). Current Value accounting differs coming from historic expense accounting in four areas. First, this values many fixed possessions on a cheaper cash flow basis, net of anticipated future capital requirements, thereby eliminating the value distortions caused by conventional downgrading accounting.
As opposed with production facilities, Marriott’s high-quality building structures, properly maintained, tend not to physically give up at the devaluation rates believed by market accounting standards. In fact , Marriott’s real estate possessions actually embrace value during inflation, as demonstrated by actual home sales. For instance , Marriott’s Essex House Resort is 50 years old, yet it remains one of America’s finest real estate property values due to the location in New York City and its particular excellent repair program.
Second, Current Benefit reports a better measure of gross annual economic profit” Discretionary Funds Flow”which disregards accounting downgrading and alternatives the actual essential capital expenses made for maintenance of property, grow and products. Third, Current Value accounting recognizes the annual profits in purchasing power by repaying financial debt in less expensive, inflated us dollars. Accounting tradition charges the inflation component of interest against current earnings, but will not reflect the benefits of debt.
Last, Current Worth reflects increases in size from possessing debt took out at fairly low interest rates. In accordance to Marriott’s calculations the latest value selling price per talk about of Marriott’s stock was $27. 83 versus the historic book value of $12. 88. Prospective customers Stock cost, of course , is based on more than book or substitute value, also, it is based on future earnings potential. Marriott’s leads for development and success seemed exceptional. Marriott’s key chain competitors were not increasing on an title basis and only selectively in 3 282-042 Marriott Organization management basis, and independents were unable to acquire financing for new hotels with no chain association and a management agreement from an effective national agent. This shown management which has a major possibility to accelerate the planned annual hotel room progress to 20%-25% per year. There are already more than 50, 000 hotel rooms, representing nearly 100 properties, inside the development “pipeline. ” It was 2 .5 times the existing number of company-operated rooms. Administration was positive about the near future and anticipated profitability to improve from an aftertax returning on resources of 6. 6% in 1979 to 8. seven percent by 1983.
Furthermore the organization seemed before schedule in achieving the goal of the 20% ROE by 1983. Main contributing factors would incorporate a continued buildup of attendance at the two Theme Recreational areas and a continued change from lodge ownership to outside control and Marriott management legal agreements. All managing contracts offered at a minimum a consistent percentage of hotel profits, and most fresh contracts gives Marriott with an increased reveal in profits after achieving certain targeted levels. Monetary Policies Marriott’s success looked certain to present management which has a problem of too much cash and underutilized debt potential… a situation nearly totally the reverse of what Gary Wilson, chief financial officer, found if he joined Marriott as treasurer in mid 1970s. At that time, this individual found a firm with a excessive debt burden, heavy personal debt repayments as a result of short maturities, and entry to only a small number of financing sources. Wilson immediately went to work at increasing the potential loan providers, opening up the commercial paper market, re-financing with much longer maturities, and reducing the whole debt weight from 54% of total capital in 1975 to 41% in year-end lates 1970s.
His monetary policy suggestions won endorsement by the board of administrators in 1978 and included the subsequent: 1 . Maintain senior funded debt to total capital inside the 40%-45% range, maintain this kind of ratio which includes capitalized auto financing leases under 50%. installment payments on your Maintain the P-1 Moody’s business paper score, as it deepens credibility to Marriott’s declare of perfect credit worthiness and impacts the availability and rate of it is commercial traditional bank and secretly placed bond debt. Among the list of 500 firms with P-1 rated commercial paper and rated connection debt, only one has a bond rating of less than “A. “) 3. Position the company further inside the domestic, unsecured, long-term, fixed-rate bond marketplace as the main source of upcoming debt financing. 4. Concern no transformable debt or preferred inventory. In addition , while Marriott acquired begun paying a funds dividend in 1977 and had increased it twice, the firm’s coverage was not to improve payout greatly as discussed in its Total annual Report: five. The company has a good record of reinvesting cash flow in high returns.
Marriott will continue this kind of reinvestment approach, so that shareholders should profit through share appreciation taxed at helpful capital gains rates, instead of through bigger dividends taxed at ordinary rates. Too Much Cash By 1979, Marriott’s four-year-old system of improving its earnings through resort management costs and the divestiture of low return businesses was operating so well it turned out producing an embarrassment of cash-flow souple. The company was rapidly moving in the course of untouched debt capacity, which Wilson deemed “imprudent” in an inflationary environment. 5 Marriott Company 82-042 Simply by 1983, the debt to capital ratio could fall to roughly twenty percent if the projected excess earnings, $125 mil over the 4-year period, had been merely used to pay down debt while the equity base extended to increase through the preservation of income. Wilson described his hate for low debt ratios: I’m a great believer in prudent power. Many other firms aren’t. However in the next 10 years, inflation can make them arrive around to my standpoint. Leverage is attractive for a very easy reason. Capital, which is the stuff through which investments are made, is made up of two components”equity and debt.
Equity in the matter of Marriott costs about 17% after duty, that is, the investor expects to gain 17% with an investment in Marriott’s stock. Debt costs only about 5% after duty. Given an investment that gets 10% after tax, it truly is evident which the more debts that I have in my capital structure, the bottom will be the expense of my capital, and the more return I will have left over for the holders of my common stock. Seeing that debt is very cheap relative to equity, it appears attractive to use as much debts as possible in a capital framework. In fact , in the event cost were the sole conditions for assortment, one would employ 100% debts.
This brings us to the second component of the determinants of capital composition and that is insurance coverage. Debt as opposed to equity has a fixed curiosity charge that needs to be met or maybe the equity holders’ investment will be jeopardized. Pretty to speak of the firm’s ability to meet the interest payments regarding coverage, and also the number of occasions the pretax cash flow in the firm complies with the interest costs. Coverage is just about the most important quantitative measure used in the rating of debt instruments simply by rating companies, as insurance rises, therefore does the relationship rating.
Highly regarded firms likewise tend to have low debt proportions which are more representative of the fact that these firms often be exceptionally large, in mature industrial sectors, with limited reinvestment options, rather than demonstrative of prudent financial coverage. It can be realistically argued that growth companies should be found in the triple-B range or perhaps lower, as opposed to the higher varies. The business’s annual survey expanded about this theme by simply stating: Keeping excess personal debt capacity is definitely inconsistent while using goal of maximizing shareholder wealth for three reasons, (1) Unused personal debt capacity is just like unused flower capacity.
Fully utilizing this capacity boosts shareholder’s returns. (2) Large proportions of debt decrease a company’s weighted cost of capital and increase the real returns to shareholders. (3) Debt-financed real-estate provides specific advantages in an inflationary environment. Repurchase of 10 , 000, 000 shares would, with a single move, remove Wilson’s matter. In fact , it will push the debt ratio back above the 75 high and in addition above the insurance plan guidelines handed less than 2 years before. Further, it would bring about interest protection of lower than three times”well below the 6 times deemed necessary for a great “A” score. See Show 4 intended for pro forma statements based on the recommended share repurchase. ). Costs Marriott’s Worries Bill Marriott had superb respect pertaining to the view of his financial staff. However , a $235 , 000, 000 debt issue used to repurchase 10 million shares might put Marriott’s debt rate well beyond the range of various other food and lodging companies, and would necessitate renegotiation of a lot of restrictive contrat under existing loan negotiating. (See Displays 5 and 6 correspondingly for monetary information on rivals and for information about restrictive contrat. ) Repurchase also appeared to 5 282-042 Marriott Firm be a negative move… a cutting back of resources…. different from the strengthen of intense expansion of operations. Maybe Finance was right regarding the potential leverage benefits, maybe the proposal to repurchase all shares held away from the family and management was more than jest. But was this obvious that paying reduced of $4 per discuss to bring in twelve million stocks was sensible? What was the correct price for Marriott’s share and might a repurchase help increase this? The Street undoubtedly seemed divided on the elegance of the share at $19 5/8. (See Exhibit 7 for a overview of the predictions and viewpoints of a number of leading experts on Wall Street. 6 Marriott Corporation 282-042 Exhibit 1 Sales Summary of Operations by Primary Business Portion (dollars in millions) 1975 $238 256 268 ” 14 $776 1976 $281 289 296 64 18 $947 1977 $335 342 317 72 24 $1, 090 78 $408 388 347 76 31 $1, 250 lates 1970s $535 480 377 84 34 $1, 510 Resort group Deal food Restaurants Theme parks Cruise ships and also other Total Working Profit Motel Group Deal food Eating places Theme parks Cruise ships and also other Total Interest (net) Company expenses Income before taxation $33 19 22 ” (3) 71 23 almost eight $40 $38 19 20 15 one particular 93 28 13 $53 $54 twenty-one 26 15 4 121 30 16 $69 $66 23 twenty eight 12 five 134 twenty four 15 $95 87 thirty-two 29 seventeen 6 171 28 20 $123 Net Assets 78 Hotel Group Contract meals Restaurants Motif parks Cruise ships and other Corporate and business Total $304 99 162 161 thirty-two 69 $827 Employed lates 1970s $372 124 175 158 32 thirty-one $892 Capital 1978 $63 11 thirty four 9 0 22 $139 Expenditures lates 1970s $81 20 45 six 1 5 $158 Devaluation 1978 lates 1970s $15 almost 8 12 being unfaithful 2 you $47 $16 8 15 9 one particular 2 $51 7 282-042 Marriott Company Exhibit a couple of Summary of Historical Functionality (dollars in millions, other than per discuss amounts) 1975 1976 bucks 947 32 3. 4% $ 326 378 48% 3. zero 10. 4% $. eighty six 0 almost 8. 95 13. 54 thirty six. 5 18, 765 52, 900 1977 $1, 090 39 three or more. 6% $ 366 370 45% a few. 3 10. 1% bucks 1 . apr. 03 10. 02 11. 75 36. 15, 383 56, 95 1978 $1, 250 54 4. 3% $ 419 310 38% 5. zero 13. 9% $ 1 ) 43. 13 11. forty five 12. 13 36. 7 17, 987 63, six-hundred 1979 $1, 510 71 4. 7% $ 414 365 41% 5. some 17. 0% $ 1 . 95. 17 12. 88 17. 35 32. you 20, 956 65, seven-hundred Sales Net gain % of sales Shareholders’ equity Older debt and capital rental obligations % of total capitala Occasions interest earnedb Return typically shareholders’ fairness after fees Earnings per sharec Cash dividends per share Book Value every share Year-end market price Volume of shares excellent (millions) Company-operated hotel rooms Workers $ 776 24 three or more. 1% money 264 406 55% 2 . 7 being unfaithful. 5% bucks. 69 zero 7. sixty-eight 15. 46 34. some 12, 987 47, six-hundred Total capital is defined as total assets much less current financial obligations. b Instances interest gained is worked out by separating earnings before interest and taxes by interest expense net appealing on tasks under construction. c Completely diluted earnings per reveal based upon the regular number of stocks and shares outstanding to get the year. almost 8 Marriott Corporation 282-042 Show 3 Current Value Statement (dollar numbers in thousands) Changes in Shareholders’ Current Worth Equity intended for 1979 Current value, December 28, 78 Increase in current value of assets Discretionary cash flow Lowering of current value of debt Cash payouts Purchase of stocks and shares
Common share issued Current value, Dec 28, lates 1970s Change in current value during 1979 Difference in current benefit during 1979 before funds dividends, reveal repurchase and issuance of recent common share $ 767, 719 77, 227 99, 123 25, 287 (5, 776) (74, 187) three or more, 810 bucks 893, 203 $ 125, 484 201, 637 Shareholders’ Equity Historical Cost Non-monetary assets (primarily plant and equipment) Significantly less: net monetary liabilities Older debt and capital rents Convertible debts Other financial liabilities Shareholders’ equity, January 28, lates 1970s $ 927, 287 365, 279 dua puluh enam, 918 121, 587 $ 413, 503 Current Value $1, 356, 244 320, 736 20, 718 121, 587 dollar 893, 203 282-042 Marriott Corporation Show 4 Pro Forma Economic Statements Based upon Repurchase of 10 , 000, 000 Shares of Common Stock, Funded using a $235 , 000, 000 Debt Concern (dollar numbers in hundreds of thousands, except income per share) Year Ended December twenty-eight, 1979 Real Pro Manera Earnings before interest and taxes Curiosity: existing personal debt $235 , 000, 000 in fresh debt Profit before taxes Income taxes Net gain Average quantity of shares (millions) Earnings every sharea bucks 151 28 ” $123 52 $71 36 $1. 96 $151 28 23 $92 thirty eight $56 twenty six $2. 16 Consolidated “balance sheet”, December twenty-eight, 1979 POSSESSIONS Cash , Mkt.
Investments Accounts receivable Inventories Additional Total current Net set assets Different Total Actual $ twenty one 100 47 10 money 178 825 77 $1, 080 Pro Forma bucks 21 90 47 12 $ a hundred and seventy-eight 825 seventy seven $1, 080 LIABILITIES , EQUITY Initial loans Current portion, long term debt Accounts payable Accumulated liabilities Taxes payable Total current Mature debt Capital lease Subordinated debt Various other liabilities Fairness Total a Fully diluted dependant on the average volume of shares outstanding for the season. Actual bucks 4 10 72 85 22 $ 188 341 24 twenty seven 86 414 $1, 080 Pro Manera $ 5 10 seventy two 80 22 $ one-hundred and eighty-eight 576 24 27 eighty six 179 $1, 080 10 Marriott Corporation 282-042 Display 5
Economical Information on Rivals Holiday Inns $17 1/4 1 . seventy five 9. on the lookout for 3. 50 4. on the lookout for. 66 17. 50 Marriott Stock Value January 80 1979 epsa P/E Ratio 1979 Cashflow per discuss a Price/Cash Flow Dividend per talk about Book Worth per talk about Avg. Annual Growth (1974-1979) Sales Income Return about Equity, 1979a Total Long-term debt % Book Capital Times Fascination Earned Rating of Mature debt Beta a Predicted Hilton $29 1/2 several. 75 six. 9 four. 80 six. 1 1 . 09 16. 91 McDonalds $ forty-four 4. 75 9. 5 6. 85 6. some. 51 twenty three. 69 Disney $ 45 3. 60 12. being unfaithful 4. 80 9. 4. 48 up to 29. 75 $19 5/8 1 ) 95 twelve 3. 70 5. 2 . 17 doze. 88 18. 7% 23. 4% 17% 45% 5. 4 NR 1 . 25 6. 2% 41. % 26% 24% 15. zero NR 1 ) 30 2 . 45% eleven. 4% 9% 33% your five. 6 BBB 1 . 45 21. 6% 22. 9% 20% 50 percent 5. 2 A 1. 05 13. 1% 18. 7% 12% 0% ” NR 1 . 12-15 Note: Yields on 91-day Treasury bills, 5 month. Treasury records and 30 yr. Treasury Bonds were 12. five per cent, 10. 4%, and 12. 1%, correspondingly, as of January 1980. eleven 282-042 Marriott Corporation Demonstrate 6 Picked Restrictive Contrat Under the $40 Million Mortgage Agreement Out dated 1977 With Six Insurance coverage Companies, 8-3/4% Rate, Thanks in 15 Equal Gross annual Installments Start December 15, 1983 1 ) Total book assets will probably be at least 155% with the sum of consolidated funded debt in addition consolidated capital leases.
Financed debt shall mean all indebtedness creating a final maturity of more than twelve months. 2 . Consolidated net working capital shall be for least equal to $6 mil. 3. Consolidated senior financed debt will probably be less than the sum of 66 2/3% of consolidated net lodge assets in addition 50% of most other consolidated assets. 4. Consolidated tangible net worth shall be maintained at all times in an volume of least equal to the sum of $240 million plus 25% of consolidated net income to get the period by July thirty-one, 1976. Real net worth shall mean shareholders’ equity without all intangible items. five.
Net income designed for fixed costs for the past yr shall have been at least 175% of pro forma twelve-monthly fixed fees. Net income designed for fixed charges shall mean EBIT and also imputed desire for all capital leases. Source: Casewriter doze Marriott Company 282-042 Display 7 Overview of Predictions and Views of Several Leading Analysts from Key Investment Businesses Firm A Est. 80 eps Représente. 1983 eps Est. 80 return about equity Est. 1983 return on equity Est. long term eps progress Riskiness of stock $1. 95 several. 00 14% 14% 15% average Company B $2. 20 three or more. 80 16% 17% twenty percent average Organization C $2. 0 several. 25 14% 15% 16% average Organization D $2. 10 several. 60 15% 16% 20% low Company E $2. 15 several. 25 15% 15% 15% low Avg. $2. 08 3. 37 14. 8% 15. 4% 17. 2% ” Advice Long-term Keep Long-term Get Long-term Carry Hold Long lasting Hold ” Marriott and Market Data Marriott Return on Equity Earnings per share Returns per reveal Price/Earnings (Average) Market value/Book value (Avg. ) Regular , Poor’s Industrials Return to Equity Profits per reveal Dividends per share Price/earnings Market value/Book value Interest levels (Year-end) 91-Day Treasury Costs 5-Year Treasury Note 30-Year Treasury You possess 7. % 7. 2% 8. 0% 5. 3% 7. 4% 8. 0% 4. 4% 6. 2% 7. 3% 6. 3% 7. 5% 8. 0% 9. 6% 9. 3% 8. 9% 12. five per cent 10. 4% 10. 1% 14. 8% $9. 69 4. 72 10 1 . 4 12. 3% $8. 55 several. 78 eleven 1 . four 14. 5% $10. sixty-eight 4. 25 11 1 ) 5 16. 6% $11. 57 4. 96 on the lookout for 1 . several 15. 2% $13. doze 5. thirty five 8 1 . 2 18. 1% $16. 08 six. 04 7 1 . two 1974 12. 6% $. 70 zero 18 2 . 1 1975 9. 5% $. 69 0 18 1 . 6 1976 twelve. 4% dollar. 86 0 17 1 ) 8 1977 11. 1% $1. ’04. 03 12 1 . 2 1978 13. 9% $1. 43. 13 10 1 . 3 1979 17. 0% $1. 95. 17 almost eight 1 . 2 13
