Time Remaining: 01:02.50 Submit This Question: 1 pt 20of31(10 complete) This Tes

Question

Time Remaining: 01:02.50 Submit This Question: 1 pt 20of31(10 complete) This Test: 31 pts possible Market Enterprise Capitalization Value (S million) (S million) PE Name Enterprise Enterprise ValuelEBITDA Book Gannet New York Times McClatchy Media General 326 Lee Enterprises Average Maximum Minimum 10.163 3061 1724 7.36 073 18.09 264 9.76 1.68 1.10 721 2423 676 564 665 .22% 1192 1489 0.39 7.65 655 0.82 11.33 1.25 460% 112% -40% 69% 1.57 1.35 +16% 267 -18% , 19% The table above shows the stock prioes and multiples for a number of fiems in the newspaper publishing industry Another newspaper publishing fm (not shown) had sales of 5600 miln,EBTDA df lionacene cash a milion, $19 million of debt, and 120 million shares outstrdng " he average eterprise value to sales for comprable basresses is used, whichofte tlowngis he trge oftasonabl. hiapoesi in OA, $6 16 to $8.71 O B. $4.51 to $12.02 OC. $609to$917 O D. $1.13 to $1.50

Explanation / Answer

Ans. A $6.16 to $ 8.71 *Calculation: Enterprise value = 1.35 * 630 850.5 million P0 = (850.5 + 70 - 19) / 120 7.51 range is from 82% to 116% of estimate. 7.51 * 82% & 7.51*116% 6.16 8.71 range = 6.16 to 8.71

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.