Assume the P/E ratio for the Restaurant industry is 8X. That suggests that investors are will to pay $8 for every dollar of expected earnings. Cul-de-Sac Barbeque Restaurant is comparable to the overall restaurant industry and is expected to generate $350,000 of earnings next year. Exercise Part 1 - Use the Market Approach to estimate the equity value of Cul-de-Sac Barbeque Restaurant Exercise Part 2 - Use the Capitalization of Earnings Method to estimate the equity value of Cul-de-Sac Barbeque Restaurant