# Question

Suppose that in January 2006, Kenneth Cole Productions had EPS of $1.65 and a book value of equity of $12.05 per share.

a. Using the average P/E multiple in Table 9.1, estimate KCP's share price.

b. What range of share prices do you estimate based on the highest and lowest P/E multiples in Table 9.1?

c. Using the average price to book value multiple in Table 9.1, 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 Table 9.1?

a. Using the average P/E multiple in Table 9.1, estimate KCP's share price.

b. What range of share prices do you estimate based on the highest and lowest P/E multiples in Table 9.1?

c. Using the average price to book value multiple in Table 9.1, 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 Table 9.1?

## Answer to relevant Questions

Suppose that in January 2006, Kenneth Cole Productions had sales of $518 million, EBITDA of $55.6 million, excess cash of $100 million, $3 million of debt, and 21 million shares outstanding.a. Using the average enterprise ...The following table shows the one-year return distribution of Startup, Inc. Calculatea. The expected return.b. The standard deviation of thereturn.Download the spreadsheet from MyFinanceLab that contains historical monthly prices and dividends (paid at the end of the month) for Ford Motor Company stock (Ticker: F) from August 1994 to August 1998. Calculate the realized ...Suppose the risk-free interest rate is 5%, and the stock market will return either 40% or -20% each year, with each outcome equally likely. Compare the following two investment strategies:(1) Invest for one year in the ...Using the data in Table 11.1,a. Compute the annual returns for a portfolio with 25% invested in North Air, 25% invested in West Air, and 50% invested in Tex Oil.b. What is the lowest annual return for your portfolio in part ...Post your question

0