2. Multiples - Use the table below (2006 Footwear industry) to answer the questions below: Market Enterprise Enterprise Enterprise Stock Capitalization Value ($ Price/ Value / Value/ Ticker Name Price ($) ($ millions millions) P/E Book Sales EBITDA KCP Kenneth Cole Productions 26.75 562 465 16.212.22 0.90 8.36 NKE NIKE, Inc. 84.20 21,830 20,518 16.64 3.59 1.43 8.75 PMMAY Puma AG 312.05 5,088 4,593 14.99 5.02 2.19 9.02 RBK Reebok International 58.72 3,514 3,451 14.91 2.41 0.90 8.58 WWW Wolverine World Wide 22.10 1,257 1,253 17.42 2.71 1.20 9.53 BWS Brown Shoe Company 43.36 800 1,019 22.62 1.91 0.47 9.09 SKX Skechers U.S.A. 17.09 683 614 17.63 2.02 0.62 6.88 SRR Stride Rite Corp. 13.70 497 524 20.72 1.87 0.89 DECK Deckers Outdoor Corp. 30.05 367 13.32 2.29 1.48 7.44 WEYS Weyco Group 19.90 226 11.97 1.75 1.06 RCKY Rocky Shoes & Boots 19.96 106 232 8.66 1.120.92 7.55 DFZ R.G. Barry Corp. 68 92 9.20 8.11 0.87 10.75 BOOT LaCrosse Footwear 10.40 75 12.09 1.28 0.76 8.30 Average (excl. KCP) 15.01 2.84 1.06 8.49 Max (relative to Avg.) +51% +186% +106% +27% Min (relative to Avg.) -42% -61% -56% -22% 9.28 373 230 6.66 6.83 62 a. Suppose that in January 2006 (the year of the table) Bears shoes had EPS of $1.65 and a book value of equity of $12.05 per share, using the average P/E multiple in the table above, estimate the price per share of Bears shoes. (Note: you must calculate the average P/E because the table above excluded Kenneth Cole Productions.) b. What range of share prices do you estimate based on the highest and lowest P/E multiples in the table above. c. Using the average price to book value multiple in the Table above, estimate the price per share of Bears shoes. (Note: you must calculate the average Price/Book because the table above excluded Kenneth Cole Productions.)