- March, 2000: Radio One, Inc., the largest radio group targeting AfricanAmericans in the USA, has the opportunity to acquire 12 established urban radio stations (in new cities) from Clear Channel Communications (CCU), which needs to divest them to satisfy anti-trust concerns. - Other companies are buying from CCU: Infinity Broadcasting has paid \$1.4b (about 21.52000 Broadcast CF) for 18 stations and Cox Radio paid $380m (about 18.42000BCF ) for 7 stations. - Broadcast CF from these 12 stations in 2000 are $65m. - The forecasted earnings for 2001 are: BroadcastCFEBITDAAfter-taxCF=$76.4m=$68.8m=$61.5m Question3(cont.) At what price should Radio One buy the 12 stations