Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Use the table for the question(s) below. Name Market Capitalization ($ million) Enterprise Value ($ million) P/E Price/ Book Enterprise Value/ Sales Enterprise Value/ EBITDA

Use the table for the question(s) below.

Name Market Capitalization ($ million) Enterprise Value ($ million) P/E Price/ Book Enterprise Value/ Sales Enterprise Value/ EBITDA
Gannet 6350 10,163 7.36 0.73 1.4 5.04
New York Times 2423 3472 18.09 2.64 1.10 7.21
McClatchy 675 3061 9.76 1.68 1.40 5.64
Media General 326 1192 14.89 0.39 1.31 7.65
Lee Enterprises 267 1724 6.55 0.82 1.57 6.65
Average 11.33 1.25 1.35 6.44
Maximum +60% 112% +16% +22%
Minimum -40% -69% -18% -19%

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 $600million, EBITDA of $84 million, excess cash of$61million, $17million 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 best estimate of the firm's share price?

A.$7.47

B.$ 7.12

C.$ 6.41

D.$ 7.00

second part

Question content area top

Part 1

Your retirement portfolio comprises 300 shares of the S&P 500 fund (SPY) and 100 shares of iShares Barclays Aggregate Bond Fund (AGG). The price of SPY is $130

and that of AGG is $98. If you expect the return on SPY to be 12% in the next year and the return on AGG to be 9%, what is the expected return for your retirement portfolio?

A.9.12%

B.10.26%

C.10.83%

D.11.4%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Finance questions

Question

What is regret ? (p. 2 49)

Answered: 1 week ago

Question

What are their resources?

Answered: 1 week ago