Use actual multipliers for other acquisitions for EPS (17.19), EBITDA (10.57), and purchase price premium (53.3%) to determine the purchase price per share for Continental Airlines using the three comparables. Note the following:

Last 4Q EPS = 4.84

Last 4Q EBITDA = 1,017 Debt Value = 2,094

Pre-acquisition stock price = $55.00

# of outstanding shares of Continental = 90.5 million

E F G EBITDA Premium 10.57 53.3% EPS 3 Actual Multipliers for Other Acquisitions: 4 - Average 17.19 5 Using the Average 6 EPS Last 40 7 Continental EPS 4.84 8 Average EPS Multiple 9 Equity Value per Share 10 11 EBITDA 12 Continental EBITDA (Last 40) 13 Average EBITDA Multiple 14 Firm Value 15 Debt Value 16 Equity Value 17 Equity Value per Share 18 19 Premium 20 Pre-Acquisition Announcement Stock Price 21 Average Premium Multiple 1,017 2,094 55.00 23 24 # of Continental shares (M) 90.50