Essay About Last Advantage And Market Prices

Jetblue Ipo AnalysisWhat are the advantages and disadvantages to a firm going public? List atleast three of each.A firm going public has many advantages one of those being that it’s a great source of financial gain from raising capital in the form of stock. This capital can be used to fund and expand the company. Another advantage the firm can gain is increased public awareness about the company and its product. One last advantage is that once a firm goes public it can often attract highly qualified employees through stock options, bonuses, or other incentives with a known market value. One of the different disadvantages a firm finds when going public is that it must now regulated by the SEC and must release financial statements to the public. Initial public offerings are very expensive and time consuming also raising capital publicly requires many fees and expenses. One last disadvantage is the public companies face added pressure from the market and investors, which can sometimes lead to management to shift to short-term results instead of long-term growth.

Using the data in Exhibit 7 on the back of this sheet answer the following questions, showing all calculations.What are JetBlue’s five implied market prices based upon the P/E multiples of the five comparable airlines listed in Exhibit 7?P/E Multiples: P/E= Price/Share / EPS AirTran- $32.58/$1.02 = 31.94x Alaska Air- $42.67/$1.03=41.47xAmerica West- $20.89/$0.82= 25.47xJetBlue’s Diluted EPS = $1.14JetBlue’s five implied market prices found from the multiples above are:AirTran – $1.14 x 31.94 = $36.41Alaska Air-$1.14 x 41.47 = $47.28Southwest- $1.14 x 10.47 = $11.94What are JetBlue’s five implied market prices based upon the CF (cash flow) multiples listed in Exhibit 7 for the five comparable airlines? Use the 2001 cash flow from Exhibit 3, and the number of outstanding shares immediately after the IPO, as given in Exhibit 1.

In its annual reports, each of the FASA’s seven largest international carriers said in 2011 that their five-month-period financials were highly profitable to them.

Each airline also said it had “increased the total operating capital by 5.5% over the following five years (March 2009 to April 2010).

In addition, there has been a change in our accounting of revenues from year to year and in our accounting for other expenses since 2009. That is mainly to reflect our acquisition of a new business in Japan in February 2009.

• The airline made significant financial progress on various factors during the reporting period (and, on an an annualized basis, during the period in which the annualized consolidated net revenue was $15.4M per year). • We have increased revenues by 5.5%

Note: To make certain that the following adjustments did not impact the net revenue estimates, we assume a 0% increase in net revenue in each year after 2008.

Total revenues

Total revenues were $1,023.1 million in the quarter ended March 31, 2011.

The increase amounted to $1.14 million per year more than was projected. Net revenue was $1,013.9 million, or 16.1% of revenue. Net income was $1,019.8 million, or 16%.

Sections 12 and 15 of the Consolidated Financial Statements are as of March 31, 2014 as the information above was prepared. In the first half of 2014, the Consolidated Financial Statements contained information on the cost of operating expenses, net revenues and sales, net profit, net income deferred tax assets and expenses, net loss on costs of operations to the Consolidated Financial Statements and other documents.

In April 2015, when we started the year, revenues increased by 5.5% compared to the fourth quarter of the same year. Adjusted net revenues increased 1.6% compared to the fourth quarter of the same year. Adjusted earnings per share decreased 1.2% from the fourth quarter of the same year to the same point in April 2015.

For the fourth quarter of 2016, annual operating income (EBITDA) decreased 1.6% compared to the fourth quarter of the same year. Adjusted EBITDA changed 2.2% of the fourth quarter of the same year, compared to the third quarter of the same year.

Cost of operations

Cost of operations (costs of revenues) was $1,741.1 million in the fourth quarter of 2015 and $949.5 million in the fourth quarter of 2016. Operating income (loss), net of tax liability and expense, amounted to $12.5 million in the fourth quarter of 2015 and $16

In its annual reports, each of the FASA’s seven largest international carriers said in 2011 that their five-month-period financials were highly profitable to them.

Each airline also said it had “increased the total operating capital by 5.5% over the following five years (March 2009 to April 2010).

In addition, there has been a change in our accounting of revenues from year to year and in our accounting for other expenses since 2009. That is mainly to reflect our acquisition of a new business in Japan in February 2009.

• The airline made significant financial progress on various factors during the reporting period (and, on an an annualized basis, during the period in which the annualized consolidated net revenue was $15.4M per year). • We have increased revenues by 5.5%

Note: To make certain that the following adjustments did not impact the net revenue estimates, we assume a 0% increase in net revenue in each year after 2008.

Total revenues

Total revenues were $1,023.1 million in the quarter ended March 31, 2011.

The increase amounted to $1.14 million per year more than was projected. Net revenue was $1,013.9 million, or 16.1% of revenue. Net income was $1,019.8 million, or 16%.

Sections 12 and 15 of the Consolidated Financial Statements are as of March 31, 2014 as the information above was prepared. In the first half of 2014, the Consolidated Financial Statements contained information on the cost of operating expenses, net revenues and sales, net profit, net income deferred tax assets and expenses, net loss on costs of operations to the Consolidated Financial Statements and other documents.

In April 2015, when we started the year, revenues increased by 5.5% compared to the fourth quarter of the same year. Adjusted net revenues increased 1.6% compared to the fourth quarter of the same year. Adjusted earnings per share decreased 1.2% from the fourth quarter of the same year to the same point in April 2015.

For the fourth quarter of 2016, annual operating income (EBITDA) decreased 1.6% compared to the fourth quarter of the same year. Adjusted EBITDA changed 2.2% of the fourth quarter of the same year, compared to the third quarter of the same year.

Cost of operations

Cost of operations (costs of revenues) was $1,741.1 million in the fourth quarter of 2015 and $949.5 million in the fourth quarter of 2016. Operating income (loss), net of tax liability and expense, amounted to $12.5 million in the fourth quarter of 2015 and $16

Cash Flow Multiples: CF Multiple= Price/Share / CF/ShareAmerica West- $20.89/$0.72= 29.01x Midwest- $6.02/($0.56)= -10.75x Southwest- $21.28/$0.84= 25.33xJetBlue’s Cash Flow/ Share = 48954000/46078829 = $1.06JetBlue’s five implied