4. Suppose furniture manufacturer Herman Miller, Inc. has earnings per share of $1.38. If the average P/E of comparable furniture stocks is 21.3, what should be the share price of Herman Miller stock using the P/E as a valuation multiple (i.e., a comparable)? 5. Wagner, Inc., is a private company that designs, manufactures, and distributes branded consumer products. During its most recent fiscal year, Wagner had revenues of $325 million and earnings of $15 million. Comparable consumer products companies P/E ratio of 21.2. Provide an estimate of Wagner's stock price, if Wagner completes an IPO and with recent IPOS have had an average ends up with 20 million shares outstanding. 6. ABC Company has been thinking about acquiring XYZ Inc. Analysts at ABC have estimated at XYZ would lead to a $3,000,000 increase in net cash flows each year over the next 10 years (and then be worthless due to increased competition). The analysts have assessed XYz flows to be as risky as those of several projects that ABC already undertakes. These projects have a cost ofcapital of2290. What is the most that ABC should pay for XYZ