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4. Assume that you are trying to estimate using the relative valuation approach the price of a new airline company that it is going to

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4. Assume that you are trying to estimate using the relative valuation approach the price of a new airline company that it is going to have an Initial Public Offering (IPO) in a few days. You know that the estimated EPS is 1.17. You also collected the following data. What is the estimated IPO price? PE ratio JetBlue 20 American Airlines 16 Southwest 23 Delta Airlines 12 Average 17.75 a. $20.77 b. $22.41 c. $23.53 d. $26.32

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