Question: BEN & JERRY'S HOMEMADE Implied share price based on comparable multiples (relative values) Peer Companies Comparable firm multiples (from Exhibit 6) Ben & Jerry's 1999

BEN & JERRY'S HOMEMADE
Implied share price based on comparable multiples (relative values)
Peer Companies Comparable firm multiples (from Exhibit 6) Ben & Jerry's 1999 financials (from Exhibit 1) Implied share price
Price/Earnings Price/book EPS BPS
Dreyer's grand
Earnings 47.2
Book equity 7.8
Eskimo Pie
Earnings 30.7
Book equity 1.1
TCBY
Earnings 12.5
Book equity 1.2
Yocream
Earnings 9.4
Book equity 1.8
Instructions:
Use Exhibit 6 to fill in the data for comparable firm multiples (relative values)
Use Exhibit 1 to fill in the data for earnings per share (EPS) and book equity per share (BPS).
Multiply the relative values by the corresponding financial data to develop a range of price estimates.

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