Use the Table for the Question(s)below

question 33

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 firm had an EPS of $0.48, what is the difference between the estimated share price of this firm if the average price-earnings ratio is used and the estimated share price if the average enterprise value/EBITDA ratio is used?

• A)$4.94
• B)$0.34
• C)$0.49
• D)$5.43

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Definitions:

Stimulus Discrimination

The ability of an organism or individual to differentiate between different stimuli, often used in the context of learning and behavior modification.

Selective Retention

The process by which individuals remember information in a way that selectively retains what is significant or aligns with their beliefs.

Selective Intuition

The process of relying on gut feelings or instincts selectively, often based on expertise or experience, in decision-making situations.

Selective Perception

The process by which individuals filter and interpret information based on their interests, background, and experiences.