Use the Table for the Question(s) Below -The Table Above Shows the Share Prices and Multiples for }&\text

question 29

Multiple Choice

Use the table for the question(s) below.
$\begin{array}{cccccc}\text { Name }&\text { Market } & \text { Enterprise } & & & \text { Enterprise } & \text { Enterprise } \\&\text { Capitalisation } & \text { Value } & & \text { Price/ } & \text { Value/ } & \text { Value/ } \\&\text { (\$ million) } & \text { (\$ million) } & \text { P/E } & \text { Book } & \text { Sales } & \text { EBITDA }\\\text { News Ltd } & 6350 & 10,163 & 7.36 & 0.73 & 1.4 & 5.04 \\\text { Seven West } & 2423 & 3472 & 18.09 & 2.64 & 1.10 & 7.21 \\\text { Ten Network } & 675 & 3061 & 9.76 & 1.68 & 1.40 & 5.64 \\\text { APN } & 326 & 1192 & 14.89 & 0.39 & 1.31 & 7.65 \\\text { Fairfax Media } & 267 & 1724 & 6.55 & 0.82 & 1.57 & 6.65\\\text { Average } &&& 11.33 & 1.25 & 1.35 & \mathbf{6 . 4 4} \\\text { Maximum } &&& +60 \% & 112 \% & +16 \% & +22 \% \\\text { Minimum } &&& -40 \% & 69 \% & -18 \% & -19 \%\\\end{array}$
-The table above shows the share prices and multiples for a number of firms in the media industry. Which of the following ratios would most likely be the most reliable in determining the share price of a comparable firm?

• A) Price/Book
• B) Enterprise Value/Sales
• C) P/E
• D) Enterprise Value/EBITDA

---

Definitions:

Social Performance

The measurement and assessment of a company or organization's impact on its stakeholders and society at large, considering social, environmental, and economic factors.

Environmental Performance

Relates to how well an organization performs in managing and reducing its environmental impacts.

Clean Water Act

A comprehensive federal law in the United States, enacted in 1972, regulating the discharge of pollutants into the nation's waters and setting water quality standards.

Navigable Waters

Bodies of water that are deep and wide enough for ships and boats to travel through, often regulated to ensure free and safe passage.