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Use the following information to solve the following three (3) problems Valuation with P/E and P/B multiples CrossTex Industries is a west Texas based natural

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Use the following information to solve the following three (3) problems Valuation with P/E and P/B multiples CrossTex Industries is a west Texas based natural gas producer and distributor that you are trying to value. Using the method of comparables, assess the value of CrossTex. Information is provided concerning the current share price (PPS), current earnings per share (EPS) and the current book value of equity per share (BPS) for Cross-Tex and three of its competitors. Required: Value CrossTex using the P/E and P/B multiples. PPS EPS BPS CrossTex Industries 2.83 28.13 RGC Resources 24.33 1.78 17.82 Atmos Engergy Corp. 25.75 1.55 18.15 Kinder Morgan 63.40 3.11 21.75

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