Use the Table for the Question(s)below

question 23

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

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Definitions:

Direct Costs

Costs that can be directly attributed to the production of specific goods or services.

Indirect Costs

Costs that are not directly attributable to a specific product or service but are necessary for the business to operate, such as utility expenses or salaried personnel.

Management Process

A systematic approach to planning, organizing, leading, and controlling a company's activities to achieve objectives.

Continuous Improvement

An ongoing effort to improve products, services, or processes by making small, incremental improvements over time.