Use the table for the question(s) below. Name Gannet McClatchy Media General New York Times 2423 Lee Enterprises Average Maximum Minimum $7.17 $7.67 Market $5.67 $5.20 Capitalization ($ Value million) million) 6350 675 326 Enterprise 267 10,163 3472 3061 1192 1724 ($ P/E 7.36 18.09 9.76 Price/ Enterprise Book Value/ Sales 0.73 2.64 1.68 14.89 0.39 -40% 6.55 0.82 11.33 1.25 +60% 112% 1.4 1.10 1.40 1.31 1.57 1.35 +16% |-69% -18% Enterprise Value/ EBITDA 5.04 7.21 5.64 7.65 6.65 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 $600 million, EPS of $0.50, excess cash of $68 million, $18 million of debt, and 120 million shares outstanding. If the average PE ratio is used for comparable businesses is used, which of the following is the best estimate of the firm's share price? 6.84 +22% -19%
Use the table for the question(s) below. Name Gannet McClatchy Media General New York Times 2423 Lee Enterprises Average Maximum Minimum $7.17 $7.67 Market $5.67 $5.20 Capitalization ($ Value million) million) 6350 675 326 Enterprise 267 10,163 3472 3061 1192 1724 ($ P/E 7.36 18.09 9.76 Price/ Enterprise Book Value/ Sales 0.73 2.64 1.68 14.89 0.39 -40% 6.55 0.82 11.33 1.25 +60% 112% 1.4 1.10 1.40 1.31 1.57 1.35 +16% |-69% -18% Enterprise Value/ EBITDA 5.04 7.21 5.64 7.65 6.65 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 $600 million, EPS of $0.50, excess cash of $68 million, $18 million of debt, and 120 million shares outstanding. If the average PE ratio is used for comparable businesses is used, which of the following is the best estimate of the firm's share price? 6.84 +22% -19%
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
Related questions
Question
Transcribed Image Text:Use the table for the question(s) below.
Name
Gannet
McClatchy
Media General
New York Times 2423
Lee Enterprises
Average
Maximum
Minimum
$7.17
$7.67
Market
$5.67
$5.20
Capitalization ($ Value
million)
million)
6350
675
326
Enterprise
267
10,163
3472
3061
1192
1724
($ P/E
7.36
18.09
9.76
Price/ Enterprise
Book Value/ Sales
0.73
2.64
1.68
14.89 0.39
-40%
6.55 0.82
11.33 1.25
+60% 112%
1.4
1.10
1.40
1.31
1.57
1.35
+16%
|-69% -18%
Enterprise
Value/
EBITDA
5.04
7.21
5.64
7.65
6.65
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 $600 million, EPS
of $0.50, excess cash of $68 million, $18 million of debt, and 120 million shares outstanding. If the
average PE ratio is used for comparable businesses is used, which of the following is the best
estimate of the firm's share price?
6.84
+22%
-19%
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