StartFraction Upper P Over Upper E EndFraction

StartFraction Price Over Book EndFraction

StartFraction Enterprise Value Over Sales EndFraction

StartFraction Enterprise Value Over EBITDA EndFraction

Average	15.01	2.84	1.06	8.49
Maximum	plus 51 %

plus 186 %

plus 106 %

plus 27 %

Minimum

negative 42 %

negative 61 %

negative 56 %

negative 22 %

Suppose that in January 2006 Kenneth Cole Productions had sales of

$ 511

million, EBITDA of

$ 52.1

million, excess cash of

$ 104

million,

$ 6.5

million of debt, and

21

million shares outstanding. Use the multiples approach to estimate KCP's value based on the following data from comparable firms:

LOADING...

.

a. Using the average enterprise value to sales multiple in the table above, estimate KCP's share price.

b. What range of share prices do you estimate based on the highest and lowest enterprise value to sales multiples in the table above.

c. Using the average enterprise value to EBITDA multiple in the table above, estimate KCP's share price.

d. What range of share prices do you estimate based on the highest and lowest enterprise value to EBITDA multiples in the table above?

a. Using the average enterprise value to sales multiple in the table above, estimate KCP's share price.

KCP's share price using the average enterprise value to sales multiple will be

$nothing

.

(Round to the nearest cent.)

b. What range of share prices do you estimate based on the highest and lowest enterprise value to sales multiples in the table above.

The highest price will be

$nothing

.

(Round to the nearest cent.)

The lowest price will be

$nothing

.

(Round to the nearest cent.)

c. Using the average enterprise value to EBITDA multiple in the table above, estimate KCP's share price.