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: (in $ million) Boot Bin Caleres Designer Brands Foot Locker Genesco Income statement Revenue 2,884 2,166 1,232 838 3,416 2,084 COGS 1,235 7,995 4,717 3,278 2,079 1,644 1,240 1,009 394 1,332 931 308 786 563 Gross profit SG&A Depreciation EBIT 26 58 68 192 48 60 173 478 1,007 320 Interest expenses 12 18 27 15 21 Income taxes 12 8 50 89 54 Net income 36 147 401 903 245 Balance sheet Cash 80 29 102 560 108 A/R 1 202 137 240 43 Inventory 308 692 956 477 2,079 2,879 Total current assets 389 923 1,195 628 Net fixed assets 86 231 171 560 130 Other assets 0 634 410 640 282 Total assets 475 1,788 1,776 4,079 1,040 AVP 59 317 410 640 152 37 346 273 238 96 663 683 390 1,199 1,839 1,279 3,118 148 202 171 303 244 865 854 693 Current debt Total current liabilities Long-term debt Total liabilities Paid-in capital Retained earnings Total equity Total L&E 37 144 68 480 87 194 779 854 481 260 231 923 922 961 347 475 1,788 1,776 4,079 1,040 14.85 16.53 40.8 38.11 Stock information Current stock price ($) Shares outstanding (million) 42.25 67.5 112.31 17.34 Part 1 8 Attempt 2/10 for 7 pts. What should be Boot Bin's value of equity based on the average price-to- earnings multiple (in $ million)? 133.40088 Correct PE ratio Stock price Earnings per share Stock price Net income Shares outstanding (in $ million) Caleres Designer Brands Foot Locker Genesco Average 14.85 16.53 40.8 38.11 147 401 903 245 Stock price Net income Shares outstanding Earnings per share PE ratio 42.25 67.5 112.31 17.34 3.479 5.94 8.04 14.13 4.268 2.782 5.07 2.697 3.706 PE ratio Stock price Shares outstanding Net income Value of equity Net income # Value of equity = PE ratio Net income = 3.706 36 = 133.4 (million) Part 2 IB Attempt 2/10 for 7 pts. What should be Boot Bin's value of equity based on the average enterprise value to EBITDA multiple (in $ million)? 0+ decimals Submit Part 3 Attempt 1/10 for 7 pts. If Boot Bin wants to issue 300 million shares in its IPO, what is a good estimate for the lower limit of the pricing range (in $)? 3+ decimals Submit Part 4 - Attempt 1/10 for 7 pts. If Boot Bin wants to issue 300 million shares in its IPO, what is a good estimate for the upper limit of the pricing range (in $)? 2+ decimals Submit 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: (in $ million) Boot Bin Caleres Designer Brands Foot Locker Genesco Income statement Revenue 2,884 2,166 1,232 838 3,416 2,084 COGS 1,235 7,995 4,717 3,278 2,079 1,644 1,240 1,009 394 1,332 931 308 786 563 Gross profit SG&A Depreciation EBIT 26 58 68 192 48 60 173 478 1,007 320 Interest expenses 12 18 27 15 21 Income taxes 12 8 50 89 54 Net income 36 147 401 903 245 Balance sheet Cash 80 29 102 560 108 A/R 1 202 137 240 43 Inventory 308 692 956 477 2,079 2,879 Total current assets 389 923 1,195 628 Net fixed assets 86 231 171 560 130 Other assets 0 634 410 640 282 Total assets 475 1,788 1,776 4,079 1,040 AVP 59 317 410 640 152 37 346 273 238 96 663 683 390 1,199 1,839 1,279 3,118 148 202 171 303 244 865 854 693 Current debt Total current liabilities Long-term debt Total liabilities Paid-in capital Retained earnings Total equity Total L&E 37 144 68 480 87 194 779 854 481 260 231 923 922 961 347 475 1,788 1,776 4,079 1,040 14.85 16.53 40.8 38.11 Stock information Current stock price ($) Shares outstanding (million) 42.25 67.5 112.31 17.34 Part 1 8 Attempt 2/10 for 7 pts. What should be Boot Bin's value of equity based on the average price-to- earnings multiple (in $ million)? 133.40088 Correct PE ratio Stock price Earnings per share Stock price Net income Shares outstanding (in $ million) Caleres Designer Brands Foot Locker Genesco Average 14.85 16.53 40.8 38.11 147 401 903 245 Stock price Net income Shares outstanding Earnings per share PE ratio 42.25 67.5 112.31 17.34 3.479 5.94 8.04 14.13 4.268 2.782 5.07 2.697 3.706 PE ratio Stock price Shares outstanding Net income Value of equity Net income # Value of equity = PE ratio Net income = 3.706 36 = 133.4 (million) Part 2 IB Attempt 2/10 for 7 pts. What should be Boot Bin's value of equity based on the average enterprise value to EBITDA multiple (in $ million)? 0+ decimals Submit Part 3 Attempt 1/10 for 7 pts. If Boot Bin wants to issue 300 million shares in its IPO, what is a good estimate for the lower limit of the pricing range (in $)? 3+ decimals Submit Part 4 - Attempt 1/10 for 7 pts. If Boot Bin wants to issue 300 million shares in its IPO, what is a good estimate for the upper limit of the pricing range (in $)? 2+ decimals Submit