Use the table for the question(s)below.
-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 $620 million,EBITDA of $84 million,excess cash of $66 million,$14 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?

Question

Use the table for the question(s)below. 
-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 $620 million,EBITDA of $84 million,excess cash of $66 million,$14 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?

Quizplus · Accepted Answer

To find the share price, first calculate the enterprise value (EV) using the EV/Sales multiple. Then, adjust for cash and debt to find the equity value, and divide by the number of shares. The calculations align with the range in option A.

Use the Table for the Question(s)below