Identifying Comparables for Estimating Equity Value Using PE Assume that you wish to estimate the equity intrinsic value of Kellogg Company using PE ratios for comparable companies. The following online data are available from companies. Company Forward PE Estimated Earnings Growth ROE Debt$$to$$Equity Kellogg $($K$).................16\mathrm{.}57(0\mathrm{.}10)\%31\mathrm{.}60\%3\mathrm{.}52$ Bunge Limited $($BG$)..........17\mathrm{.}6592\mathrm{.}12\%10\mathrm{.}13\%1\mathrm{.}00$ General Mills $($GIS$)...........16\mathrm{.}2014\mathrm{.}83\%27\mathrm{.}46\%1\mathrm{.}97$ Hormel Foods $($HRL$)..........24\mathrm{.}73(9\mathrm{.}06)\%17\mathrm{.}29\%0\mathrm{.}04$ ConAgra Foods $($CAG$)........14\mathrm{.}3085\mathrm{.}62\%11\mathrm{.}54\%1\mathrm{.}44$ Required a$.$ Identify two of the four companies as better comparables for use in valuation of Kellogg. Explain your reasoning. Hint: Consider each company on the basis of growth and financial risk. b$.$ Explain your reasoning for the two companies eliminated in part a$.$