Top Posters
Since Sunday
78
19
16
15
12
10
10
9
8
8
8
8
New Topic  
wrote...
Posts: 191
Rep: 9 0
A week 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 54 times
1 Reply
Replies
Answer verified by a subject expert
wrote...
Posts: 218
A week ago
Sign in or Sign up in seconds to unlock everything.
$6.07 to $8.59
1
Related Topics
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
  107 People Browsing
Your Opinion

Previous poll results: Who's your favorite biologist?
Related Images
 864
 89
 80