Use the Table for the Question(s)below

question 30

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 best estimate of the firm's share price?

• A)$6.89
• B)$6.98
• C)$7.41
• D)$7.65

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Definitions:

Cash Flow

The sum of funds moving into and out of a company, particularly influencing its liquidity.

Salaries

Payments made to employees for their services, typically expressed as an annual sum and paid at regular intervals.

Investing Activities

Financial activities related to the purchase and sale of long-term assets or investment securities, impacting a company's cash flow.

Financing Activities

Transactions involving raising capital and repaying investors, including debt, equity, and dividend payments as part of a company's cash flow.