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Suppose that in January 2006 Kenneth Cole Productions had EPS of $1.54 and a book value of equity of $10.88 per share. Use the multiples
Suppose that in January 2006 Kenneth Cole Productions had EPS of $1.54 and a book value of equity of $10.88 per share. Use the multiples approach to estimate KCP's value based on the data from comparable firms given in the following table: a. Using the average P/E multiple from the table above, estimate KCP's share price. b. What range of share prices do you estimate based on the highest and lowest P/E multiples in the table above? c. Using the average price to book value 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 price to book value multiples in the table above? a. Using the average P/E multiple from the table above, estimate KCP's share price. KCP's share price for this case will be $. (Round to the nearest cent.) X Data table (Click on the Icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Price Enterprise Value Enterprise Value - E Book Sales EBITDA Average 15.01 2.84 1.06 Maximum +51% + 186% + 106% + 27% Minimum - 42% - 61% - 56% - 22% 8.49 Print Done Help me solve this View an example Get more help Clear all Check answer Type here to search o Ri c 64F Sunny 12:17 PM 12/2/2021 14 El C 23
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