1. Multiples- Use the table below(2006 Footwear industry) to answer the questions below:Suppose that in January 2006 (the year of the table) Bears shoes had EPS of $1.65 and a book value of equity of $12.05 per share, using the average P/E multiple in the table above, estimate theprice per shareof Bears shoes. (Note: you must calculate the average P/E because the table above excluded Kenneth Cole Productions.)
2. Whatrange of share pricesdo you estimate based on the highest and lowest P/E multiples in the table above.
3. Using the average price to book value multiple in the Table above, estimate theprice per shareof Bears shoes. (Note: you must calculate the average Price/Book because the table above excluded Kenneth Cole Productions.)