JETBLUE AIRWAYS IPO VALUATION (Bruner, F. R., Eades, M. K., and Schill, J. M. (2014) Case Studies in Finance. 7th Ed. New York: McGraw Hill)

QUESTION 1 Is going public a good idea for Jetblue?

QUESTION 2 Illustrate the flow of Jetblue's Initial Public Offering (IPO) process.

QUESTION 3 (2.5 Marks) Discuss the costs associated with the IPO.

QUESTION 4 (6 Marks) What discount rate is appropriate for the cash-flow forecast?

QUESTION 5 (15 Marks) What price would you recommend that JetBlue offer its shares? (Assuming a discounted cash flow valuation, build a cash flow forecast from 2002 to 2010 refer to Exhibit 13)