Suppose that in January 2006, Kenneth Cole Productions had EPS of $1.65 and a book value of equity of $12.05 per share.

a. Using the average P/E multiple in Table 9.1, estimate KCP’s share price.

b. What range of share prices do you estimate based on the highest and lowest P/E multiples in Table 9.1?

c. Using the average price to book value multiple in Table 9.1, estimate KCP’s share price.

d. What range of share prices do you estimate based on the highest and lowest price to book value multiples in Table 9.1?

AppendixLO1