Based on the 3 performance reports and financial statements provided below answer the following:

1. Calculate or estimate the following for each firm in the industry:

Firm	Market Capitalization	Price to Earnings Ratio (P/E)	Enterprise Value (EV)	Enterprise Value To Sales Ratio (EV/Sales)	Cash Flow
1
2
3
4
5
6
7
8
9
10

2. Which competitor would you target for a takeover? Provide a brief rationale for your takeover decision based on the measures you calculated and any other considerations you used.

3. What would you expect the cost of the takeover to be? How would you finance it?

1st , 2nd and 3rd QTR Performance Report:

Financial Summary Ratios Company 4 Industry Current Ratio 1.484 1.361 Return on Sales 0.004 -0.144 Return on Equity 0.006 -0.488 Return on Assets 0.003 -0.062 Debt-to-Equity 1.043 2.177 Company Name Revenue Net Prot Stock Price Quality 1 Kite $3,834,143 $87,026) $17.00 58 2 Air Express $5,196,552 $(557,533) $17.36 67 3 LuxAir $2,768,968 $(1,366,100) $12.94 67 4 TEK AIRWAYS $3,348,330 $14,194 $21.37 79 5 Midwest Airlines $2,815,067 $48,834 $23.52 66 6 StellAir $2,669,101 $5,640 $20.63 65 7 Voyager $5,587,531 $(103,764) $16.73 75 8 Sparrow Airlines $2,860,274 $53,359 $23.80 67 9 Reliance Air $3,212,882 $31,597 $22.48 69 10 Sapphire Air $2,009,524 $(1,728,062) $11.30 70 industry Average $3,430,237 $663,886) $18.71 68 \f\f\f\f\f