College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
22nd Edition
ISBN: 9781305666160
Author: James A. Heintz, Robert W. Parry
Publisher: Cengage Learning
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Question
Use the table for the question(s) below.
|
Name
|
Market Capitalization ($ million)
|
Enterprise Value ($ million)
|
P/E
|
Price/ Book
|
Enterprise Value/ Sales
|
Enterprise Value/ EBITDA
|
|
Gannet
|
6350
|
10,163
|
7.36
|
0.73
|
1.4
|
5.04
|
|
New York Times
|
2423
|
3472
|
18.09
|
2.64
|
1.10
|
7.21
|
|
McClatchy
|
675
|
3061
|
9.76
|
1.68
|
1.40
|
5.64
|
|
Media General
|
326
|
1192
|
14.89
|
0.39
|
1.31
|
7.65
|
|
Lee Enterprises
|
267
|
1724
|
6.55
|
0.82
|
1.57
|
6.65
|
|
Average
|
|
|
11.33
|
1.25
|
1.35
|
6.44
|
|
Maximum
|
|
|
+60%
|
112%
|
+16%
|
+22%
|
|
Minimum
|
|
|
minus−40%
|
minus−69%
|
minus−18%
|
minus−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 $600 million, EBITDA of $84 million, excess cash of $68
million, $12 million 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 range of reasonable share price estimates?
million, $12 million 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 range of reasonable share price estimates?
A. $1.08 to $1.44
can you show me the steps to get answer C.
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- 15. Use the table for the question(s) below. Name Market Capitalization Enterprise Value Enterprise Enterprise Price/ P/E Value/ Value/ Book ($ million) ($ million) Sales EBITDA Gannet 6350 10,163 7.36 0.73 1.4 5.04 New York Times 2423 3472 18.09 2.64 1.10 7.21 McClatchy 675 3061 9.76 1.68 1.40 5.64 Media General 326 1192 14.89 0.39 1.31 7.65 Lee Enterprises 267 1724 6.55 0.82 1.57 6.65 Average 11.33 1.25 1.35 6.44 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 $600 million, EBITDA of $84 million, excess cash of $68 million, $18 million 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? A) $6.45 B) $7.20 C) $7.17 D) $7.53arrow_forwardGiven the following data; TOTAL SALES OMR 250000 CASH SALES OMR 125000 SALES RETURN OMR 5000 OPENING SUNDRY DEBTORS OMR 20000 CLOSING SUNDRY DEBTORS OMR 10000 What will be the Debtors Turnover Ratio (DTR)? a.16 b.6 c.5 d.8arrow_forwarduse excel and compute ebitda xarrow_forward
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