Exhibit TN-1 DCF Value of Acquisition Opportunities

Risk Free Rate=

Risk Premiun=
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

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

TV@18.1XBCF
PV of CF (01-04)
235,643
2004 TV
2,086,514
PV Of 2004 TV
1,316,588
Total Enterprise Value
1,552,231

2002
89,711
1,794
87,917
90,840
(2,923)
(994)
(1,929)
3,875
2,100
90,840
82,935
0.7944
65,899

2003
101,966
2,039
99,927
91,260
8,667
2,947
5,720
3,726
2,100
91,260
91,154
0.7080
64,563

2004
115,277
2,306
112,971
91,680
21,291
7,239
14,052
3,800
2,100
91,680
99,832
0.6310
63,030

Terminal Value as a growing perpetuity

4%
6%
8%
235,643
235,643
235,643
1,268,637
1,711,221
2,576,924
800,508
1,079,778
1,626,036
1,036,152
1,315,422
1,861,680

Exhibit TN-2 Net Working Capital as a Percen of Revenues

Percentage of Revenues
Revenues Net Trade/Accounts Accounts
Accounts
Accounts
of Commissions Receivable
Payable
Receivable Payable
1997
32,367
8,722
258
27%
1%
1998
46,109
12,026
1,190
26%
3%
1999
81,703
19,833
1,663
24%
2%
Average
26%
2%

tage of Revenues
Net Working
Capital
26%
24%
22%
24%

Exhibit TN-3 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%
3%
12.2%

EBITDA
74,907
87,917
99,927
112,971
124,269
136,695
150,365
165,402
181,942
200,136
220,149
242,164
266,381
293,019
322,321

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

EBITDA
Growth
17.40%
13.66%
13.05%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%

Depreciation
90,420
90,840
91,260
91,680
92,100
92,100
92,100
92,100
92,100
92,100
92,100
92,100
92,100
92,100
92,100
331,990
(2,100)
329,890
(112,163)
217,728
(3,578)
214,150
2,331,767
0.178

Present value of TV

414,756

Present value of 2001-15 CF

781,879

Taxable
Income
(15,513)
(2,923)
8,667
21,291
32,169
44,595
58,265
73,302
89,842
108,036
128,049
150,064
174,281
200,919
230,221

Tax
(5,274)
(994)
2,947
7,239
10,937
15,162
19,810
24,923
30,546
36,732
43,537
51,022
59,255
68,312
78,275

Cash Flow
Adjustments
57,525
84,865
85,434
85,780
85,820
85,402
84,942
84,436
83,879
83,267
82,594
81,854
81,039
80,143
79,157

Present value of TV
Total enterprise value

414,756
1,196,635

After-tax
Cash Flow
47,287
82,935
91,154
99,832
107,051
114,835
123,397
132,815
143,175
154,571
167,107
180,896
196,064
212,749
231,103

Discount
Factor
0.891
0.794
0.708
0.631
0.562
0.501
0.447
0.398
0.355
0.316
0.282
0.251
0.224
0.200
0.178
Total

Present
Value
42,151
65,880
64,535
62,994
60,204
57,559
55,126
52,881
50,808
48,888
47,106
45,448
43,903
42,459
41,107
781,879

Change in net
working capital
30,795
3,875
3,726
3,800
4,180
4,598
5,058
5,564
6,121
6,733
7,406
8,146
8,961
9,857
10,843

2
3
4
5
6
7
8
9
10
11
12
13
14
15

Exhibit TN-4 Valuation of Potential Acquisitions Using Trading Multiples

Industry Average
Radio One
Acquisition
Value
Multiple
Value
multiple
Value
BCF
76,436
18.1 1,383,492
22.1 1,689,236
EBITDA
74,907
19.4 1,453,201
24.2 1,812,756
After-tax Cash Flow
74,681
26.1 1,949,169
36.5 2,725,849

Hispanic
Multiple
Value
42.1 3,217,956
44.5 3,333,374
59.7 4,458,444