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Use the Table for the Question(s)below

question 114

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Use the table for the question(s) below.
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.Which of the following ratios would most likely be the most reliable in determining the stock price of a comparable firm? A) P/E B) Price/Book C) Enterprise Value/Sales D) Enterprise Value/EBITDA E) Free cash flow/EBITDA
-The table above shows the stock prices and multiples for a number of firms in the newspaper publishing industry.Which of the following ratios would most likely be the most reliable in determining the stock price of a comparable firm?


Definitions:

Absorption Costing

This accounting practice involves the comprehensive addition of manufacturing costs—direct materials, direct labor, and both variable and fixed overheads—to the price of a product.

Fixed Manufacturing Overhead

Fixed manufacturing overhead consists of indirect production expenses that remain constant regardless of the volume of products manufactured, like equipment depreciation.

Deferred

Refers to actions, expenses, or incomes that are postponed or delayed to a future period instead of being recognized immediately.

Released

Released refers to products, news, or information that has been made available to the public or a specific audience.

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