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Use the Table for the Question(s)below

Question 83

Multiple Choice

Use the table for the question(s) below.
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 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? A) $0.34 B) $0.49 C) $4.94 D) $5.43 E) $7.12
-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 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?


A) $0.34
B) $0.49
C) $4.94
D) $5.43
E) $7.12

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