× Didn't find what you were looking for? Ask a question
Top Posters
Since Sunday
r
4
L
4
3
d
3
M
3
l
3
V
3
s
3
d
3
a
3
g
3
j
3
New Topic  
Kaevyn04 Kaevyn04
wrote...
Posts: 480
5 years 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 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
Textbook 
Fundamentals of Corporate Finance

Fundamentals of Corporate Finance


Edition: 2nd
Authors:
Read 211 times
2 Replies

Related Topics

Replies
wrote...
5 years ago
$0.49
Kaevyn04 Author
wrote...
5 years ago
Thanks
New Topic      
Explore
Post your homework questions and get free online help from our incredible volunteers
  1631 People Browsing
Related Images
  
 236
  
 128
  
 336
Your Opinion