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
icon
Related questions
Question
Use the table for the question(s) below
Name
Gannet
New York Times
McClatchy
Media General 326
Lee Enterprises
Average
Maximum
Minimum
OA $6.52
OB $7.00
Market Enterprise
Capitalization Value
(5 million)
6350
2423
675
OC. $7.00
OD 17 24
267
1192
(5 million)
10,163
3472
3061
1724
14.89
Price/
Book
PIE
7.36
0.73
18.09 2.64
9.76 1.68
0.39
6.55 0.82
11.33
1.25
+60% 112%
-40% 69%
Enterprise
1.31
Valuel
Sales
1.4
1.10
1.40
1.57
1.35
+16%
-18%
Enterprise
7.65
Value/
EBITDA
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, EBITDA
of $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 is
the best estimate of the firm's share price?
CIED
5.04
7.21
5.64
6.65
6.44
+22%
-19%
Transcribed Image Text:Use the table for the question(s) below Name Gannet New York Times McClatchy Media General 326 Lee Enterprises Average Maximum Minimum OA $6.52 OB $7.00 Market Enterprise Capitalization Value (5 million) 6350 2423 675 OC. $7.00 OD 17 24 267 1192 (5 million) 10,163 3472 3061 1724 14.89 Price/ Book PIE 7.36 0.73 18.09 2.64 9.76 1.68 0.39 6.55 0.82 11.33 1.25 +60% 112% -40% 69% Enterprise 1.31 Valuel Sales 1.4 1.10 1.40 1.57 1.35 +16% -18% Enterprise 7.65 Value/ EBITDA 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, EBITDA of $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 is the best estimate of the firm's share price? CIED 5.04 7.21 5.64 6.65 6.44 +22% -19%
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Trading
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Essentials Of Investments
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
FUNDAMENTALS OF CORPORATE FINANCE
FUNDAMENTALS OF CORPORATE FINANCE
Finance
ISBN:
9781260013962
Author:
BREALEY
Publisher:
RENT MCG
Financial Management: Theory & Practice
Financial Management: Theory & Practice
Finance
ISBN:
9781337909730
Author:
Brigham
Publisher:
Cengage
Foundations Of Finance
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
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…
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