Use the Table for the Question(s)below

question 61

Multiple Choice

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

• A)$6.07 to $8.59
• B)$5.72 to $8.09
• C)$1.12 to $1.68
• D)$6.00 to $9.04
• E)$7.01 to $8.78

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Definitions:

Missed Payment

Failure to make a scheduled payment on a loan or other financial obligation by the due date.

Strict Foreclosure

A legal process by which a secured lender can take possession of the collateral property without the need to sell it, typically when the value of the collateral is less than the debt owed.

Satisfaction of Debt

Satisfaction of Debt is the fulfillment of a financial obligation, such as the repayment of a loan, thereby releasing the debtor from further liability.

Owner's Rights

Legal rights conferred to owners, entitling them to use, enjoy, and dispose of their property as they see fit.