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dipinvester

05/10/10 10:14 PM

#41355 RE: laurap #41352

First off, I don't think it matters if it's a cash cow or not...p20 is the homerun and what all shareholders are shareholders for...the CEO is thus fulfilling his fiduciary responsibility, by definition.

But, I still think it is a cash cow:

Cash Cow:
1)Return on asset > market growth....Yes
2)Steady cash flow that can be used for other business units...Yes
3)Large market share...Undebatable, yes
4)Low reinvestment...Yes
5)Low market growth...Yes

This is Finance stuff from like first semester college...it's called the BCG matrix, google it....