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Exhibit A DCF Value of Acquisition Opportunities

Risk Free Rate


Risk Premium
Asset Beta
Asset Return

BCF New Markets


Corporate
EBITDA
Depreciation
EBIT
Taxes
EBIAT=NI
Net Working Capital
Capital Expenditures
Depreciation
Cash Flow
Discount Factor
PV of Cash Flow

PV of CF (01-04)
2004 TV
PV of 2004 TV
Total Enterprise Value

Total Enterprise Value

6.28%
7.20%
0.82
12.18%

2001
76,436
1,529
74,907
90,420
(15,513)
(5,274)
(10,238)
30,795
2,100
90,420
47,287
0.8914
$42,151

2002
89,711
1,794
87,917
90,840
(2,923)
(994)
(1,929)
3,875
2,100
90,840
82,935
0.7946
$65,899

2004
115,277
2,306
112,971
91,680
21,291
7,239
14,052
3,800
2,100
91,680
99,832
0.6314
$63,030

Terminal Value as a Growing Perpetuity


4.00%
6.00%
8.00%
$235,643
$235,643
$235,643

TV@18.1xBCF
$235,643
2,086,514
1,317,339
$1,552,982

TV@18.1xBCF
$
1,552,982

2003
101,966
2,039
99,927
91,260
8,667
2,947
5,720
3,726
2,100
91,260
91,154
0.7083
$64,563

1,268,637
800,965
$1,036,608

1,711,221
1,080,394
$1,316,037

2,576,924
1,626,964
$1,862,607

Terminal Value as a Growing Perpetuity


4.00%
6.00%
8.00%
1,036,608 $
1,316,037 $
1,862,607

Exhibit B Alternative Valuation of Acquisition Opportunities


Assumptions
Growth rates:
2001-2015
Beyond 2015
Discount rate
Year
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015

10.00%
3.00%
12.18%

Cash Flow After-tax


Discount Present
EBITDA EBITDA Growth Depreciation Taxable Income Tax
adjustments Cash Flow factor
Value
74,907
90420
-15,513
-5,274
57525
47,286
0.8910
42,132
87,917
17.4%
90840
-2,923
-994
84865
82,935
0.7946
65,899
99,927
13.7%
91260
8,667
2,947
85434
91,154
0.7083
64,563
112,971
13.1%
91680
21,291
7,239
85780
99,832
0.6314
63,030
124,269
10.0%
92100
32,169
10,937
85820
107,051
0.5628
60,247
136,695
10.0%
92100
44,595
15,162
85402
114,835
0.5017
57,609
150,365
10.0%
92100
58,265
19,810
84942
123,397
0.4472
55,181
165,402
10.0%
92100
73,302
24,923
84436
132,815
0.3986
52,942
181,942
10.0%
92100
89,842
30,546
83879
143,175
0.3553
50,873
200,136
10.0%
92100
108,036
36,732
83267
154,571
0.3167
48,957
220,149
10.0%
92100
128,049
43,537
82594
167,107
0.2823
47,180
242,164
10.0%
92100
150,064
51,022
81854
180,896
0.2517
45,526
266,381
10.0%
92100
174,281
59,255
81039
196,064
0.2243
43,984
293,019
10.0%
92100
200,919
68,312
80143
212,749
0.2000
42,544
322,321
10.0%
92100
230,221
78,275
79157
231,103
0.1783
41,195
Total
781,860

2016 EBITDA=2015 grown by rate


Less: Depreciation = Capital Exp.
EBIT
Less: Tax@34%
EBIAT
Less: Wkg Cap 2016
Normalized 2016 cash flow
2015 value of TV
Discount factor in 2015

331,990
2,100
329,890
112,163
217,728
3,578
214,150
2,331,769
0.1783

Present value of TV

415,644

Present value of 2001-15 CF

781,860

Present value of TV

415,644

Total enterprise value

1,197,505

Exhibit C Valuation of Potential Acquisitions Using Trading Multiples


Acquisition
Value
Industry Average
Multiple
Value
BCF
76436
18.1
1,383,492
EBITDA

74907.28

19.4

1,453,201

Radio One
Multiple
Value
22.1
1,689,236
24.2

1,812,756

Hispanic
Multiple
Value
42.1
3,217,956
44.5

3,333,374

After-tax Cash Flow


74,681
26.1
1,949,169
36.5
2,725,849
59.7
4,458,444
Average
1,595,287
2,075,947
3,669,925
The after-tax cash flow for Radio One is normalized to remove the effect of the initial working capital funding in 2001. The normalized after-tax
cash flow is calculated as:
2001 After-tax cash flow
Plus: Initial working capital funding
Less: Workin capital for change in sales
from 2000-2001 at 24% of net revenue
Normalized after-tax cash flow

47,287
30,795
3,401
74,681

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