Use the table for the question(s) belowNameGannetNew York TimesMcClatchyMedia General 326Lee EnterprisesAverageMaximumMinimumOA $6.52OB $7.00Market EnterpriseCapitalization Value(5 million)63502423675OC. $7.00OD 17 242671192(5 million)10,16334723061172414.89Price/BookPIE7.360.7318.09 2.649.76 1.680.396.55 0.8211.331.25+60% 112%-40% 69%Enterprise1.31ValuelSales1.41.101.401.571.35+16%-18%Enterprise7.65Value/EBITDAThe 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 $600 million, EBITDAof $84 million, excess cash of $70 million, $11 milion of debt, and 120 million shares outstanding. If the average enterprise value to sales for comparable businesses is used, which of the following isthe best estimate of the firm's share price?CIED5.047.215.646.656.44+22%-19%

Multiple method is being used for valuation of the similar companies and valuation of the similar…

Gannet New York Times McClatchy Media General 326 Lee Enterprises Average Maximum Minimum Capitalization (3 million) 6350 2423 675 267 OA 16.52 OB $7.00 O.C. $7.60 OD 17.24 1192 Value (5 million) 10,163 3472 3061 1724 14.89 PIE 7.36 18.09 9.76 0.39 Pricel Book 0.73 2.64 1.68 6.55 0.82 11.33 1.25 +60% 112% -40% 60% 1.31 Valus! Sales 14 1.10 1.40 1.57 1.35 +16% -18% 7.65 Valuel EBITDA 5.04 7.21 5.64 6.65 6.44 +22% -19% The table above shows the stock prices and multiples for a number of firms in the newspaper publishing industry. Another newspaper publishing of $84 million, excess cash of $70 million, $11 million of debt, and 120 million shares outstanding. If the average enterprise value to sales for com the best estimate of the firm's share price?

Gannet New York Times McClatchy Media General 326 Lee Enterprises Average Maximum Minimum Capitalization (3 million) 6350 2423 675 267 OA 16.52 OB $7.00 O.C. $7.60 OD 17.24 1192 Value (5 million) 10,163 3472 3061 1724 14.89 PIE 7.36 18.09 9.76 0.39 Pricel Book 0.73 2.64 1.68 6.55 0.82 11.33 1.25 +60% 112% -40% 60% 1.31 Valus! Sales 14 1.10 1.40 1.57 1.35 +16% -18% 7.65 Valuel EBITDA 5.04 7.21 5.64 6.65 6.44 +22% -19% The table above shows the stock prices and multiples for a number of firms in the newspaper publishing industry. Another newspaper publishing of $84 million, excess cash of $70 million, $11 million of debt, and 120 million shares outstanding. If the average enterprise value to sales for com the best estimate of the firm's share price?

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

See similar textbooks

Similar questions

National Semiconductor (NSM)Analog Devices Inc. (ADI)Texas Instruments (TXN) Revenue (billions) $1.64 $2.27 $11.32 Gross margin 64.41% 58.83% 46.80% Operating margin 25.35% 20.09% 17.67% Net Income 220.20M 349.78M 1.28B Earnings per share 0.924 1.225 0.978 Price-to-earnings ratio 15.56 20.48 21.31 The National Semiconductor Corporation (NSM) develops and manufactures semiconductors for electronic systems. The firm's products are used in a variety of applications, including LED lighting, high speed communication, renewable energy, and security and surveillance. The company's chief financial officer (CFO) has a report prepared annually that compares the firm's performance to several key competitors. The CFO has identified Analog Devices (ADI) and Texas Instruments (TXN) as key competitors. Selected information for all three companies is found here LOADING... for the twelve-month period ended June 2009. Based on this information, which of the two companies appears to be…
RNOA + FLEV X Spread X NCI Ratio = ROE 25.89% +FLEV X 24.37% X 1.0026 =50% What is FLEV? Please show steps
Camaro GTO Torino Cash $ 2,000 $ 110 $ 1,000 Short-term investments 50 0 580 Current receivables 350 470 700 Inventory 2,600 2,420 4,230 Prepaid expenses 200 500 900 Total current assets $ 5,200 $ 3,500 $ 7,410 Current liabilities $ 2,000 $ 1,000 $ 3,800 Compute the current ratio and acid-test ratio for each of the following separate cases.
7 Problem 8-9B (Algo) Calculate and analyze ratios (LO8-6) View previous attempt 3 points Ferris Air Selected financial data regarding current assets and current liabilities for Ferris Air and Oceanic Airlines are provided as follows: ($ in millions) Oceanic Airlines Current assets: Cash and cash equivalents $1,135 $3,784 Current investments 3,014 1,261 Net receivables 721 1,754 eBook Inventory 435 298 Other current assets 180 547 Total current assets $5,485 $7,644 Current liabilities: References Current debt $6,779 $6,691 Accounts payable 2,582 2,317 Other current liabilities 0 1,514 Total current liabilities $9,361 $10,522 Required: Mc Graw Hill 1-a. Calculate the current ratio for Ferris Air and Oceanic Airlines. 1-b. Which company has the more favorable current ratio? 2-a. Calculate the acid-test (quick) ratio for Ferris Air and Oceanic Airlines. 2-b. Which company has the more favorable acid-test ratio? Complete this question by entering your answers in the tabs below. Req 1A Req…
q. 10 A company has net working capital of $687. Long term debt is $4,078, total assets are $6,201, and fixed assets are $3,948. What is the amount of total liabilities? $8,026 $6,888 $4,765 $5,514 $5,644
Solvency and Profitability Trend Analysis Addai Company has provided the following comparative information: 20Y8 20Υ7 20Υ6 20Y5 20Υ4 Net income $273,406 S367,976 S631,176 $884,000 $800,000 Interest expense 616,047 572,003 528,165 495,000 440,000 Income tax expense 31,749 53,560 106,720 160,000 200,000 Total assets (ending balance) 4,417,178 4,124,350 3,732,443 3,338,500 2,750,000 Total stockholders' equity (ending balance) 3,706,557 3,433,152 3,065,176 2,434,000 1,550,000 Average total assets 4,270,764 3,928,396 3,535,472 3,044,250 2,475,000 Average total stockholders' equity 3,569,855 3,249,164 2,749,588 1,992,000 1,150,000 You have been asked to evaluate the historical performance of the company over the last five years. Selected industry ratios have remained relatively steady at the following levels for the last five years: 20Y4-20Y8 Return on total assets 28% Return on stockholders' equity 18% Times interest earned 2.7 Ratio of liabilities to stockholders' equity 0.4 Required: 1.…
PW 20191007 AC 251 FINANCIAL MANAGEMENT 3. Last Year Ratter Robotics had $5 million in Operating income (EBIT). The company has net depreciation expense of $1 million and interest expense of S1million; its corporate tax rate was 40 percent. The company has $14million in current assets and $4 million in non-interest-bearing current liabilities; it has $15 million in net plant and equipment. It estimates that it has an after-tax cost of capital of 10 percent. Assume Ratner only non-cash item was depreciation. a. What was the company's net income for the year? b. What was the company's net cash flow?
ACC610
A9 please help.....
Problem 19-4 Per-Share Ratios (LO3, CFA6) You are given the following information for Smashville, Inc. Cost of goods sold: $249,000 Investment income: $2,900 Net sales: $394,000 Operating expense: $92,000 Interest expense: $7,400 Dividends: $13,000 Tax rate: 21 % Current liabilities: $22,000 Cash: $21,000 Long-term debt: $9,000 Other assets: $37,000 Fixed assets: $139,000 Other liabilities: $5,000 Investments: $13,000 Operating assets: $49,000 During the year, Smashville, Inc., had 17,000 shares of stock outstanding and depreciation expense of $15,000. Calculate the book value per share, earnings per share, and cash flow per share. (Do not round intermediate calculations. Round your answers to 2 decimal places.)
P14-5 L03, 4, 5, 6, 7 Comparing Alternative Investment Opportunities (AP14-4) The 2012 financial statements for the Price and Waterhouse companies are summarized here: cel Price Company Waterhouse Company www.mhhe.com/libby7e Balance Sheet Cash $ 41,000 $ 21,000 Accounts receivable (net) Inventory Operational assets (net) Other assets 38,000 31,000 99,000 40.000 140,000 84,000 401,000 305,000 Total assets $402,000 $798.000 $99,000 $49,000 60,000 Current liabilities Long-term debt (10%) Capital stock (par $10) Contributed capital in excess of par Retained earnings 65,000 148.000 512,000 29,000 106.000 61,000 71,000 Total liabilities and stockholders' equity $402,000 $798,000 continued 728 CHAPTER 14 Analyzing Financial Statements Price Company Waterhouse Company Income Statement Sales revenue (1/3 on credit) Cost of goods sold Expenses (including interest and income tax) $447,000 (241,000) (161,000) $802.000 (398,000) (311,000) Net income $ 45,000 $ 93,000 Selected data from the 2011…
Probability of financial Value of debt distress $0 0% $2,500,000 1% $5,000,000 2% $7,500,000 4% $10,000,000 8% $12,500,000 16% $15,000,000 32% $20,000,000 64%

SEE MORE QUESTIONS

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS