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
icon
Related questions
Question
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%
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%
AI-Generated Solution
AI-generated content may present inaccurate or offensive content that does not represent bartleby’s views.
steps

Unlock instant AI solutions

Tap the button
to generate a solution

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