Blog

 Investment A: Year:                    0                  1                2                3                4            5 Cash flow:          -$14,000     $6000        $6000        $6000        $6000    $6000   Investment B: Year:                    0                  1                2                3                4            5 Cash flow:          -$15,000     $7000        $7000        $7000        $7000    $7000   Investment C: Year:                    0                  1                2                3                4            5 Cash flow:          -$18,000     $12,000     $2000        $2000        $2000    $2000   The cash flows for three projects are shown above. The cost of capital is 9.5%. Even though we know the payback period is an unreliable investment decision rule, suppose an investor decides to take projects with a payback period two years or less. Which of these projects would he take? 

Which valuation method would be best to use if you are looking to invest in a start-up company that took on debt to spend a significant amount on upfront CapEx and has high growth potential?

Individuals with which condition experience personality changes and disinhibition much earlier than persons with Alzheimer’s disease?  

Episodic memory and working memory are most affected by the aging process, whereas semantic, lexical, and nondeclarative memory are more likely to be preserved.

Which of the following is the one common feature associated with all types of aphasia?

Although other conditions and diseases can cause language impairments, what term is used if it is primarily a language deficit?

What medical professional is the only member of the healthcare team who actually witnesses the patient’s use of medications and their outcome, at least in the institutional setting?

Which of the following is the main excitatory neurotransmitter in the brain?  

What is a disadvantage of using “comparables method” for equity valuation?

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 6.84 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 $600 million, EPS of $0.50, excess cash of $68 million, $18 million of debt, and 120 million shares outstanding. If the average PE ratio is used for comparable businesses is used, which of the following is the best estimate of the firm’s share price?