Andrea Risso is a junior analyst with AquistareFianco, an independent equity research firm. Risso's supervisor asks her to update, as of January 1, 2015, a quarterly research report ffor Centralino S.p.A., a telecommunications company headquartered in Italy. On that date, Centralino's common share price is €50 and its preferred shares trade for €5.25 per share. The market value of long-term debt is equal to its book value. Shares outstanding are 41.94 million of common shares and 16.00 million of preferred shares. Net sales of Centralino were €3.182 billion in 2014. Below you can see company's balance sheet.

What is the multiple of enterprise value to sales for Centralino as of December 31 2014 is closest to? 

 

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EXHIBIT 2 Summary Balance Sheet for Centralino, Year Ended December 31, 2014 Liabilities and Shareholders' Equity (€ millions) Assets (€ millions) Cash and cash equivalents Accounts receivable Inventory Total current assets Property and equipment, net Total assets 102 305 333 740 913 1,653 Current liabilities Long-term debi Total liabilities Preferred shares Common shares Retained earnings Total shareholders' equity Total liabilities and shareholders' equity 259 626 80 826 121 1,027 1.653 EXHIBIT 2 Summary Balance Sheet for Centralino, Year Ended December 31, 2014 Liabilities and Shareholders' Equity (€ millions) Assets (€ millions) Cash and cash equivalents Accounts receivable Inventory Total current assets Property and equipment, net Total assets 102 305 333 740 913 1,653 Current liabilities Long-term debi Total liabilities Preferred shares Common shares Retained earnings Total shareholders' equity Total liabilities and shareholders' equity 259 626 80 826 121 1,027 1.653

Answer rating: 100% (QA)

ANSWER To calculate the enterprise value of Centralino we need to add the market value of equity mar... View the full answer