Use the Table for the Question(s)below

question 41

Multiple Choice

Use the table for the question(s) below.
-The table above shows the share prices and multiples for a number of firms in the media industry. Another media 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)$1.12 to $1.68
• B)$6.00 to $9.04
• C)$6.07 to $8.59
• D)$5.72 to $8.09

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Definitions:

Experimental Research

A systematic and scientific approach to research in which the researcher manipulates one or more variables to observe the effect on some behavior or mental process.

Survey

A method of gathering information from a sample of individuals through questions to generalize findings to a larger population.

Experimentation

A method of scientific investigation involving the manipulation and controlled testing of variables to establish cause and effect relationships.

Correlational Research

A research method that examines the relationship between two or more variables to determine if a correlation exists.