3. Discounted Cash Flow approach Two-step From year 2010 to infinity From year 2002-2010 WACC
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8. WACC Pioneer model in low-fare air travel that needs to be followed The most stable one in historical annual growth of low-fare airlines (see Exhibit 8) Like JetBlue, they all belong to low-fare airlines that compare to other groups (see Exhibit 12) Idea: Why choose Southwest?