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Suppose that in January 2 0 0 6 , Kenneth Cole Productions had sales of $ 5 3 1 million, EBITDA of $ 5 4

Suppose that in January 2006, Kenneth Cole Productions had sales of $531 million, EBITDA of $54.8 million, excess cash of $109 million, $6.9 million of debt, and 22 million shares ol
multiples approach to estimate KCP's value based on the following data from comparable firms:
a. Using the average enterprise value to sales multiple in the table above, estimate KCP's share price.
b. What range of share prices do you estimate based on the highest and lowest enterprise value to sales multiples in the table above.
c. Using the average enterprise value to EBITDA multiple in the table above, estimate KCP's share price.
d. What range of share prices do you estimate based on the highest and lowest enterprise value to EBITDA multiples in the table above?
a. Using the average enterprise value to sales multiple in the table above, estimate KCP's share price.
KCP's share price using the average enterprise value to sales multiple will be $,(Round to the nearest cent.)
b. What range of share prices do you estimate based on the highest and lowest enterprise value to sales multiples in the table above.
The highest price will be $,(Round to the nearest cent.)
The lowest price will be $,(Round to the nearest cent.)
c. Using the average enterprise value to EBITDA multiple in the table above, estimate KCP's share price.
KCP's share price using the average enterprise value to EBITDA multiple will be $.(Round to the nearest cent.)
d. What range of share prices do vou estimate based on the hiahest and lowest enterbrise value to EBITDA multiples in the table above?
The highest price will be $
The lowest price will be $
Data table
(Click on the following icon in order to copy its contents into a spreadsheet.)
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