Earnings per	Book Value of
			Equity per
Company	Stock Price	share (ttm)	share (ttm)
Badger Meter (BMI)	45.78	1.15	9.42
Gorman-Rupp (GRC)	31.28	0.91	12.22
Franklin Electric (FELE)	45.42	1.85	14.99
Mueller Water Products	12.35	-0.77	3.08
Circor International	46.02	0.92	27.39

36. You are using the market method to value Circor International using Price to Book Value of Equity multiple. Given the table of information below, what is the appropriate valuation of Circor shares using the Price/Book multiple? a. $38.96 b. $45.42 c. $47.47 d. $49.39 e. $49.13

37. You are using the market method to value Circor International using Price to Earnings multiple. Given the table of information above, what is the appropriate valuation of Circor shares using the Price/Earnings multiple? a. $19.02 b. $28.82 c. $30.28 d. $30.37 e. $46.02

38. Use the information in the table above to compute the current the Price/Earnings multiple for Circor International. Compute the Cap Rate for Circor based upon the computed P/E multiple. The correct answer is: a. 19.99% b. 2.42% c. 14.07% d. 2.00% e. 45.42%

39. Assume that a company has a P/E multiple equal to 18. If the long term geometric growth rate in earnings is assumed to be 2.8%, what is the estimated cost of equity for the firm? a. 2.76% b. 4.34% c. 8.36% d. 9.94% e. 16.80%