Top Posters
Since Sunday
6
l
6
n
5
N
5
m
5
s
4
4
4
r
4
m
4
4
s
4
New Topic  
be beautiful be beautiful
wrote...
Posts: 355
Rep: 9 0
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 range of reasonable share price estimates?

▸ $1.12 to $1.68

▸ $5.72 to $8.09

▸ $6.07 to $8.59

▸ $6.00 to $9.04
Textbook 

Fundamentals of Corporate Finance


Edition: 2nd
Authors:
Read 73 times
1 Reply
Replies
Answer verified by a subject expert
Va97001Va97001
wrote...
Posts: 319
3 months ago
Sign in or Sign up in seconds to unlock everything for free.
$6.07 to $8.59
1

Related Topics

wrote...
Posts: 355
Credits: 70

3 months ago
Brilliant
wrote...
Posts: 14
Credits: 40

Yesterday
Thanks for your help!
wrote...
Posts: 15
Credits: 40

Yesterday
TY
New Topic      
Explore
Post your homework questions and get free online help from our incredible volunteers.
Learn More
Improve Grades
Help Others
Save Time
Accessible 24/7
  93 People Browsing
 164 Signed Up Today
Your Opinion
Who's your favorite biologist?
Votes: 48

Related Images
 95
 92