Author Question: Use the table for the question(s) ... (Read 17 times)

K@ · **on:** Jul 9, 2019

Use the table for the question(s) below.

Name

Market

Enterprise

Capitalization

Value

Price/

Value/

($ million)

P/E

Book

Sales

EBITDA

Gannet

6350

10,163

7.36

0.73

1.4

5.04

New York Times

2423

3472

18.09

2.64

1.10

7.21

McClatchy

675

3061

9.76

1.68

1.40

5.64

Media General

326

1192

14.89

0.39

1.31

7.65

Lee Enterprises

267

1724

6.55

0.82

1.57

6.65

Average

11.33

1.25

1.35

6.44

Maximum

+60%

112%

+16%

+22%

Minimum

-40%

69%

-18%

-19%

The table above shows the stock prices and multiples for a number of firms in the newspaper publishing industry. Another newspaper publishing firm (not shown) had sales of $620 million, EBITDA of $84 million, excess cash of $66 million, $14 million of debt, and 120 million shares outstanding. If the firm had an EPS of $0.48, what is the difference between the estimated share price of this firm if the average price-earnings ratio is used and the estimated share price if the average enterprise value/EBITDA ratio is used?
◦ $0.49
◦ $5.43
◦ $4.94
◦ $0.34

jonathanballen97 · **Reply #1 on:** Jul 9, 2019

A FREE account is required to view all solutions!

Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.

Answer Preview

Only 32% of students answer this correctly