Re: A Challenge

[Dib9@aol.com]

In a message dated 97-07-26 19:27:39 EDT, you write:

<< Years
 ago, the rule was a station was worth 2.5 times cash flow (where cash flow =
 pre-tax profit plus depreciation). >>

Stations sell for much more than a 2.5 multiple these days.  Buyers work
under the assumption that they can do better or that only a few signals in
major markets remain available or they simply assume that prices always go
up.  As many people who bought stations in the 1980's can tell you, that is
not always the case.

Dan Billings
Bowdoinham, Maine

------------------------------