The industry average market-to-book ratio for the airline industry is 3. Estimate the fair value of Oceanic Airlines shares based on the industry average multiple and the data supplied in the table, below.

A) $17.06

B) $22.36

C) *$55.98

D) $65.00

Looking for the process work to understand why the solution is C) $55.98.

Price $65 Debt $545M Equity $9,087M Cash $3,630M EBITDA $2,770M Shares Outstanding 487M