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11 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

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11

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 $87 million, excess cash of $62 million, $17 million of debt, and 120 million shares outstanding. If the firm had an EPS of $0.47, 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. $0.17 B. $2.81 C. $3.09 D. $0.28

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