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

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