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

question 10

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? 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 average enterprise value to sales for comparable businesses is used, which of the following is the range of reasonable share price estimates?

• A) $1.12 to $1.68
• B) $6.07 to $8.59
• C) $6.00 to $9.04
• D) $5.72 to $8.09

Learn the process and significance of recording purchases of materials.

Comprehend the treatment of actual and applied factory overhead in a job costing system.

Understand the calculation and application of predetermined overhead rates.

Grasp the concept of underapplied and overapplied factory overhead and its adjustment.

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Definitions:

Ritualistic Behavior

Repeated actions performed in a specific sequence, often with symbolic meaning, and sometimes related to cultural or religious practices.

Stubborn

Showing determination not to change one's attitude or position on something, especially in spite of good arguments or reasons to do so.

Customary Pricing

Setting prices based on what is traditionally expected or accepted within the market or among competitors.

Cost-plus Pricing

An approach to pricing in which a sale price is established by adding a specific extra amount to the product's per-unit cost.