PLEASE HELP SELECT CORRECT ANSWER CHOICES!

Kenneth Cole (KCP) had sales of SS01.3 million in 2005. Based on KCP's past profitability and investment needs, you expect EBIT to be 9% of sales, increases in net working capital requirements to be 10% of any increase in sales, and net investment (capital expenditures in excess of depreciation) to be 8% of any increase in sales, KCP has $100.4 million in cash, $2.8 million in debt, 20.8 million shares outstanding, a tax rate of 37%, and a weighted average cost of capital of 11%. a. Suppose you believe KCP's initial revenue growth rate will be between 4% and 11%* (*with growth slowing in equal steps to 4% by year 2011). What range of share prices for KCP is consistent with these forecasts? b. Suppose you believe KCP's EBIT margin will be between 7% and 10% of sales. What range of share prices for KCP is consistent with these forecasts (keeping KCP's initial revenue growth at 9% with growth slowing in equal steps to 4% by year 2011)? c. Suppose you believe KCP's weighted average cost of capital is between 10% and 12%. What range of share prices for KCP is consistent with these forecasts (keeping KCP's initial revenue growth and EBIT margin at 9% with growth slowing in equal steps to 4% by year 2011)? d. What range of share prices is consistent If you vary the estimates as in parts (a), (b), and (c) simultaneously? That is: Case 1 Case 2 Revenue growth rate 11% EBIT margin 7% 10% WACC 10% 12% a. Suppose you believe KCP's initial revenue growth rate will be between 4% and 11% (with growth slowing in equal steps to 4% by year 2011). What range of share prices for KCP is consistent with these forecasts? (Select the best choice below.) O O A. The range of share prices consistent with these forecasts is from $20.23 to $24.97. B . The range of share prices consistent with these forecasts is from $25.30 to $24.45. O c. The range of share prices consistent with these forecasts is from $19.33 to $27.04. D. The range of share prices consistent with these forecasts is from $27.88 to $21.92. O b. Suppose you believe KCP's EBIT margin will be between 7% and 10% of sales. What range of share prices for KCP is consistent with these forecasts (keeping KCP's initial revenue growth at 9% with growth slowing in equal steps to 4% by year 2011)? (Select the best choice below.) O A. The range of share prices consistent with these forecasts is from $20.23 to $24.97. OB. The range of share prices consistent with these forecasts is from $27.88 to $21.92. O C. The range of share prices consistent with these forecasts is from $25.30 to $24.45. OD. The range of share prices consistent with these forecasts is from $19.33 to $27.04. c. Suppose you believe KCP's weighted average cost of capital is between 10% and 12%. What range of share prices for KCP is consistent with these forecasts (keeping KCP's initial revenue growth and EBIT margin at 9% with growth slowing in equal steps to 4% by year 2011)? (Select the best choice below.) O A. The range of share prices consistent with these forecasts is from $19.33 to $27.04. OB. The range of share prices consistent with these forecasts is from $27.88 to $21.92. O C. The range of share prices consistent with these forecasts is from $20.23 to $24.97. OD. The range of share prices consistent with these forecasts is from $25.30 to $24.45. d. What range of share prices is consistent if you vary the estimates as in parts (a), (b), and (c) simultaneously? That is: Case 1 4% Revenue growth rate EBIT margin WACC Case 2 11%* 10% 12% 7% 10% (Select the best choice below.) O A. The range of share prices consistent with these forecasts is from $25.30 to $24.45. OB. The range of share prices consistent with these forecasts is from $27.88 to $21.92. O C. The range of share prices consistent with these forecasts is from $20.23 to $24.97. OD. The range of share prices consistent with these forecasts is from $19.33 to $27.04. Kenneth Cole (KCP) had sales of SS01.3 million in 2005. Based on KCP's past profitability and investment needs, you expect EBIT to be 9% of sales, increases in net working capital requirements to be 10% of any increase in sales, and net investment (capital expenditures in excess of depreciation) to be 8% of any increase in sales, KCP has $100.4 million in cash, $2.8 million in debt, 20.8 million shares outstanding, a tax rate of 37%, and a weighted average cost of capital of 11%. a. Suppose you believe KCP's initial revenue growth rate will be between 4% and 11%* (*with growth slowing in equal steps to 4% by year 2011). What range of share prices for KCP is consistent with these forecasts? b. Suppose you believe KCP's EBIT margin will be between 7% and 10% of sales. What range of share prices for KCP is consistent with these forecasts (keeping KCP's initial revenue growth at 9% with growth slowing in equal steps to 4% by year 2011)? c. Suppose you believe KCP's weighted average cost of capital is between 10% and 12%. What range of share prices for KCP is consistent with these forecasts (keeping KCP's initial revenue growth and EBIT margin at 9% with growth slowing in equal steps to 4% by year 2011)? d. What range of share prices is consistent If you vary the estimates as in parts (a), (b), and (c) simultaneously? That is: Case 1 Case 2 Revenue growth rate 11% EBIT margin 7% 10% WACC 10% 12% a. Suppose you believe KCP's initial revenue growth rate will be between 4% and 11% (with growth slowing in equal steps to 4% by year 2011). What range of share prices for KCP is consistent with these forecasts? (Select the best choice below.) O O A. The range of share prices consistent with these forecasts is from $20.23 to $24.97. B . The range of share prices consistent with these forecasts is from $25.30 to $24.45. O c. The range of share prices consistent with these forecasts is from $19.33 to $27.04. D. The range of share prices consistent with these forecasts is from $27.88 to $21.92. O b. Suppose you believe KCP's EBIT margin will be between 7% and 10% of sales. What range of share prices for KCP is consistent with these forecasts (keeping KCP's initial revenue growth at 9% with growth slowing in equal steps to 4% by year 2011)? (Select the best choice below.) O A. The range of share prices consistent with these forecasts is from $20.23 to $24.97. OB. The range of share prices consistent with these forecasts is from $27.88 to $21.92. O C. The range of share prices consistent with these forecasts is from $25.30 to $24.45. OD. The range of share prices consistent with these forecasts is from $19.33 to $27.04. c. Suppose you believe KCP's weighted average cost of capital is between 10% and 12%. What range of share prices for KCP is consistent with these forecasts (keeping KCP's initial revenue growth and EBIT margin at 9% with growth slowing in equal steps to 4% by year 2011)? (Select the best choice below.) O A. The range of share prices consistent with these forecasts is from $19.33 to $27.04. OB. The range of share prices consistent with these forecasts is from $27.88 to $21.92. O C. The range of share prices consistent with these forecasts is from $20.23 to $24.97. OD. The range of share prices consistent with these forecasts is from $25.30 to $24.45. d. What range of share prices is consistent if you vary the estimates as in parts (a), (b), and (c) simultaneously? That is: Case 1 4% Revenue growth rate EBIT margin WACC Case 2 11%* 10% 12% 7% 10% (Select the best choice below.) O A. The range of share prices consistent with these forecasts is from $25.30 to $24.45. OB. The range of share prices consistent with these forecasts is from $27.88 to $21.92. O C. The range of share prices consistent with these forecasts is from $20.23 to $24.97. OD. The range of share prices consistent with these forecasts is from $19.33 to $27.04