1. Shoe Barn Inc. is a privately owned firm with few investors. Investors forecast their earnings per share (EPS) to reach $2 this coming year. The average price-to-earnings (P/E) ratio for similar companies in the S&P 500 is 12.

What will the estimated intrinsic value of the Shoe Barn Inc.'s stock?

2. Market mutiple anaylsis is also used to calcualte the vale of a company, which is further used to calculate the intrinisc value per share of the firm.

Suppose you have the information given in the following table for Company X.

	Year 1	Year2
EBITDA	7120	8250
Total Value of Equity	81000	75000
Total Firm Value	121500	135000

What is the value of the entitity multiple of Company X in Year 1?

a. 16.36

b. 11.38

c. 22.19

d. 17.07