Firm	Value/Sales	P/E Ratio	Sales (mil)	Net income (mil)
Fast Air	1.02	7.70	7,286	214
Southeastern Airlines	0.87	10.50	17,879	1,567
Western Skies	1.44	11.40	35,580	12,470
Northern Winds	0.73	5.80	2,023	1
East Frontiers	0.80	4.90	5,450	790
Southern Ventures	5.14	9.20	21,373	5,890
Slow Motion	1.05	-9.17	10,900	-105
Sweet Tracks	1.67	5.37	12,200	2,880
Wild Adventures	10.90	44.19	1,029	357
World Horizons			11,561	2,550

1. Calculate the value of World Horizons using the median P/E ratio of its peers.

2. Which company should not be used as a comparable peer for World Horizons?

A. Northern Winds

B. Western Skies

C. Wild Adventures

D. Slow Motion

3. Recalculate the value of World Horizons using the median P/E ratio of its peers, excluding the worst peer