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Suppose that in January 2 0 0 6 , Kenneth Cole Productions had EPS of $ 1 . 7 6 and a book value of
Suppose that in January Kenneth Cole Productions had EPS of $ and a book value of equity of $ per share. Use the multiples approach to estimate KCPs value based on the
comparable firms given in the following table:
a Using the average PE multiple from the table above, estimate KCPs share price.
b What range of share prices do you estimate based on the highest and lowest PE multiples in the table above?
c Using the average price to book value multiple in the table above, estimate KCPs share price.
d What range of share prices do you estimate based on the highest and lowest price to book value multiples in the table above?
a Using the average PE multiple from the table above, estimate KCPs share price.
KCPs share price for this case will be $Round to the nearest cent.
b What range of share prices do you estimate based on the highest and lowest PE 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 price to book value multiple in the table above, estimate KCPs share price.
KCPs share price for this case will be $Round to the nearest cent.
d What range of share prices do you estimate based on the highest and lowest price to book value 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.
Data table
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