Pizza Palace (PP), is considering purchasing a smaller chain, Western Mountain Pizza. PPs analysts expect the merger to result in incremental net cash flows as follows: Y1=$1,900,000, Y2 = $2,200,000, Y3 = $3,500,000, Y4 =$5,800,000. In addition, Westerns Y4 cash flows are expected to grow at a constant rate of 4% after Y4. Westerns post merger beta is expected to be 2 and its tax rate would be 30%. The risk free rate is presently 6% and the market risk premium is 5%. What is the value of Western to Pizza Palace ?

The current market shares for U.S. airlines is as follows: Airline Market Share Delta 16.3% United 15.7% Southwest 15.4% American 12.8% US Airways 8.4% JetBlue 5.1% Alaska 4.1% If American and US Airways successfully merge. According to Justice Department merger guidelines, what type of industry would this merger result in ?