Answered step by step
Verified Expert Solution
Question
1 Approved Answer
(Click on the following icon in order to copy its contents into a spreadsheet.) Average Maximum Minimum 15.01 +51% - 42% Price Book 2.84 +
(Click on the following icon in order to copy its contents into a spreadsheet.) Average Maximum Minimum 15.01 +51% - 42% Price Book 2.84 + 186% - 61% Enterprise Value Sales 1.06 + 106% -56% Enterprise Value EBITDA 8.49 + 27% - 22% Suppose that in January 2006 Kenneth Cole Productions had sales of $515 million, EBITDA of $52.5 million, excess cash of $101 million, $5.8 million of debt, and 18 million shares outstanding. Use the multiples approach to estimate KCP's value based on the following data from comparable firms: a. Using the average enterprise value to sales multiple in the table above, estimate KCP's share price. b. What range of share prices do you estimate based on the highest and lowest enterprise value to sales mult c. Using the average enterprise value to EBITDA multiple in the table above, estimate KCP's share price. d. What range of share prices do you estimate based on the highest and lowest enterprise value to EBITDA multiples in the table above? a. Using the average enterprise value to sales multiple in the table above, estimate KCP's share price. KCP's share price using the average enterprise value to sales multiple will be $ . (Round to the nearest cent.) b. What range of share prices do you estimate based on the highest and lowest enterprise value to sales multiples in the table above. The highest price will be $ (Round to the nearest cent.) The lowest price will be $ (Round to the nearest cent.) c. Using the average enterprise value to EBITDA multiple in the table above, estimate KCP's share price. KCP's share price using the average enterprise value to EBITDA multiple will be $ (Round to the nearest cent.) d. What range of share prices do you estimate based on the highest and lowest enterprise value to EBITDA multiples in the table above? The highest price will be $ (Round to the nearest cent.) The lowest price will be $ (Round to the nearest cent.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started