Problem 1 Apache Airlines is looking to buy Aerial Airlines. Your boss, the CFO, wants a quick and dirty valuation of Aerial. You choose to look at past transactions in the airline industry to get some numbers. You find the following from reported transactions for the average price paid: - 17.19x the acquired firm's earnings per share (EPS) - 10.57x EBITDA -53.3% premium of share price For Aerial, you find out the following: - EPS = $5.25 - EBITDA = $1017 million (debt value = $2094 million) - stock price = $66 Using EPS, EBITDA, and premium over stock price, what should be Aerial's prices per share? What is the average of the three