Use the Table for the Question(s) Below

question 36

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. 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

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Definitions:

Thin-Slice Judgments

Quick assessments made based on limited information, often used in forming first impressions.

First Impressions

The initial perception or judgment formed about someone or something, typically occurring within seconds of interaction or observation.

Rapport Topic

A subject or matter used as a basis to establish a positive and understanding relationship with someone, especially in sales or professional settings.

First Meetings

The initial encounters or engagements between individuals or groups, often aimed at discussing ideas, making introductions, or establishing a relationship.