a) What should be Boot Bin's value of equity based on the average price-to-earnings multiple (in $ million)?

b) What should be Boot Bin's value of equity based on the average enterprise value to EBITDA multiple (in $ million)?

c) If Boot Bin wants to issue 210 million shares in its IPO, what is a good estimate for the lower limit of the pricing range (in $).

d) If Boot Bin wants to issue 210 million shares in its IPO, what is a good estimate for the upper limit of the pricing range (in $).

Intro Boot Bin is a privately-owned national chain of shoe stores. The owners want to take the company public through an initial public offering. They hired an investment bank to help them with the offering. The bankers have collected the following information about Boot Bin and comparable companies in the same industry: Boot (in $ million) Caleres Designer Brands Foot Locker Genesco Bin Income statement Revenue 1,826 COGS 2,742 1,563 1,179 1,242 3,035 1,851 1,184 2,071 1,180 7,757 4,577 3,180 Gross profit 584 891 SG&A 457 960 698 2017 538 38 55 61 186 46 Depreciation EBIT 89 164 425 977 307 Interest expenses 12 18 27 15 21 Income taxes 18 7 44 87 51 Net income 59 139 354 875 235 Balance sheet Cash 119 27 91 543 104 A/R 2 192 121 233 41 457 658 850 2017 456 Inventory Total current assets 578 877 1,062 2,793 601 Net fixed assets 128 219 152 543 124 Other assets 0 603 364 621 269 Total assets 706 1,699 3,957 994 1,578 364 A/P 88 302 621 145 Current debt 55 329 243 228 Total current liabilities 143 631 607 373 219 192 152 1,164 1,785 1,241 3,026 465 290 362 823 759 Long-term debt Total liabilities Paid-in capital Retained earnings Total equity 663 55 137 61 83 289 739 758 466 248 344 876 819 931 331 Total L&E 706 1,699 1,578 3,957 994 14.85 16.53 40.8 38.11 Stock information Current stock price ($) Shares outstanding (million) 42.25 67.5 112.31 17.34