2. In 2000, Air Virginia announced it would sell WUMX-FM in Charlottesville (see Exhibit 7). Clear Channel (CC) management planned to bid on the station, in part because CC thought that Eure Communications, CC's main competitor in Charlottesville, was likely to bid. An industry rule of thumb was that stations traded at 10 times earnings before interest, taxes, depreciation, and amortization (EBITDA = approx. 42% of trade value). As CC's advisor, what is your recommended bid?

3. In your view, does Clear Channel have the right corporate scope? Would you sell any one of the three divisions?