Use the table for the question(s)below.
-The table above shows the share prices and multiples for a number of firms in the media industry. Another media 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 firm had an EPS of $0.48, what is the difference between the estimated share price of this firm if the average price-earnings ratio is used and the estimated share price if the average enterprise value/EBITDA ratio is used?

Question

Use the table for the question(s)below. 
-The table above shows the share prices and multiples for a number of firms in the media industry. Another media 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 firm had an EPS of $0.48, what is the difference between the estimated share price of this firm if the average price-earnings ratio is used and the estimated share price if the average enterprise value/EBITDA ratio is used?

Quizplus · Accepted Answer

The Answer of Use the table for the question(s)below. 
-The table above shows the share prices and multiples for a number of firms in the media industry. Another media 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 firm had an EPS of $0.48, what is the difference between the estimated share price of this firm if the average price-earnings ratio is used and the estimated share price if the average enterprise value/EBITDA ratio is used?

Use the Table for the Question(s)below