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SPP24 SPP24
wrote...
Posts: 304
3 months ago
Use the table for the question(s) below.

NameMarketEnterpriseEnterpriseEnterprise
CapitalizationValuePrice/Value/Value/
($ million)($ million)P/EBookSalesEBITDA
Gannet635010,1637.360.731.45.04
New York Times2423347218.092.641.107.21
McClatchy67530619.761.681.405.64
Media General326119214.890.391.317.65
Lee Enterprises26717246.550.821.576.65
Average11.331.251.356.44
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 average enterprise value to sales for comparable businesses is used, which of the following is the best estimate of the firm's share price?

▸ $7.41

▸ $7.65

▸ $6.89

▸ $6.98
Textbook 

Fundamentals of Corporate Finance


Edition: 2nd
Authors:
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Answer verified by a subject expert
JlynnJlynn
wrote...
Posts: 311
3 months ago
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$7.41
1

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wrote...
3 months ago
Thanks
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