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In addition to footwear, Kenneth Cole Productions designs and sells handbags, apparel, and other accessories. You decide, therefore, to consider comparables for KCP outside the

In addition to footwear, Kenneth Cole Productions designs and sells handbags, apparel, and other accessories. You decide, therefore, to consider comparables for KCP outside the footwear industry. You also know the following about KCP: it has sales of $ 518million, EBITDA of $ 55.6million, excess cash of $ 100million, $ 3 million of debt, EPS of $ 1.65, book value of equity of $ 12.05 per share, and 21 million shares outstanding.
a. Suppose that Fossil, Inc., has an enterprise value to EBITDA multiple of 10.61 and a P/E multiple of 16.31. What share price would you estimate for KCP using each of these multiples, based on the data for KCIn addition to footwear, Kenneth Cole Productions designs and sells handbags, apparel, and other accessories. You decide, therefore, to consider comparables for KCP outside the footwear industry.
You also know the following about KCP: it has sales of $518 million, EBITDA of $55.6 million, excess cash of $100 million, $3 million of debt, EPS of $1.65, book value of equity of $12.05 per share,
and 21 million shares outstanding.
a. Suppose that Fossil, Inc., has an enterprise value to EBITDA multiple of 11.51 and a P/E multiple of 16.01. What share price would you estimate for KCP using each of these multiples, based on
the data for KCP?
b. Suppose that Tommy Hilfiger Corporation has an enterprise value to EBITDA multiple of 8.46 and a P/E multiple of 17.86. What share price would you estimate for KCP using each of these
multiples based on the data for KCP?
a. Suppose that Fossil, Inc., has an enterprise value to EBITDA multiple of 11.51 and a P/E multiple of 16.01. What share price would you estimate for KCP using each of these multiples, based on
the data for KCP?
Using the Enterprise value/EBITDA ratio for Fossil the price is $.(Round to the nearest cent.)
b. Suppose that Tommy Hilfiger Corporation has an enterprise value to EBITDA multiple of 7.18 and a P/E multiple of 17.25. What share price would you estimate for KCP using each of these multiples based on the data for KCP?
please solve both a & b please
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