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  3. b. use the industry rule of thumb that stations tr

b. Use the industry rule of thumb that stations trade at 10 times EBITDA and...

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Finance

b. Use the industry rule of thumb that stations trade at 10 times EBITDA and that a new station can typically achieve 25% market share in a segment being served by a single incumbent. Assuming Air Virgina and Eures margins are similar to CCs, and Charlottesvilles radio stations performance in 2000 were representative of their performance in 2004, what is the maximum Eure is likely to bid? What is the maximum that CC can afford to bid

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