JetBlue Case

1. Focus on the process of underwriting, which is described well in pages of the case. 2. Focus on the Business Strategy of JetBlue---Will it succeed? Discuss the drawbacks as well as strengths of the strategy. 3. What airline would you compare JetBlue with—Southwest, WestJet etc 4. What is the cost of equity for JetBlue? Info is given in the case about Southwest and market rates and premium. 5. What is the projected growth rate of Southwest? How does it compare with those of other airlines? 6. It is not easy to calculate the value/ price per share of this firm. But you can try. Exhibit 13 has forecasts of income statements and cash flows. Can you draw some quick inferences. 7. If the firm decides to offer at 24-27$ per share, Do you think it is a fair price based on your judgment of the growth rate, cost of equity, cash flows and business strategy.

Try not to get lost in lot of #s. Think of this case as a relationship between business strategy and IPO.

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