KOHLER as a private firm which has two divisions: kitchen and bath division constitutes 40% of KOHLERS assets, and power systems division constitute 60% of KOHLERs assets. Comparables for kitchen and bath divisions are AS and AW. Comparables for power systems division are BS, CM, and DD.

Selected financial data about comparable companies and kohLER (and millions)

	American Standard	American woodwork	Briggs & Stratton	Cummins engine	Detroit diesel	kohler company
Ticker	AS	AW	BS	CM	DD	KH
MV Equity	3500	2400	2000	2800	3200	N/A
Debt	1500	1200	800	1000	1500	500
Sales	7500	4000	4800	2000	6400	3200
Depreciation	600	400	1000	400	150	600
Operating costs	2500	1200	1000	1100	1200	1500
Shares outstanding (M)	25	12	16	10	20	12

1. Estimate the total firm value and stock value of KOHLER, using sales multiples and NOPAT multiples. Assume tax rate is 25% for all firms.
2. CEO thinks that discounted free cash flow model often produces more accurate valuation then comparables model. Do you agree? (no need for calculations, 1-3 sentences.)
3. CEO thinks that firms Capital structures will affect your evaluation with multiples (comparables) model. What would you suggest a CEO to do? (no need for calculations, 1-3 sentences.)