Question: Use the table below to answer questions 18-20 regarding Kroger. P/E P/FCFE P/E FYE 2020 Analyst Consensus Estimated Earnings (Per Share) Industry 60.36 23.20 Kroger

Use the table below to answer questions 18-20 regarding Kroger. P/E P/FCFE P/E FYE 2020 Analyst Consensus Estimated Earnings (Per Share) Industry 60.36 23.20 Kroger (KR) 9.37 2.26 Sector 30.22 25.94 Caseys General Stores Inc (CASY) 30.33 5.10

18. Using the Industry multiple P/E, what is the valuation estimate for KRs share price near FYE 2020.

a. $ 200.88

b. $ 136.41

c. $ 75.26

d. $ 68.30

e. $ 89.54

19. Using the Industry multiple P/E, what is the valuation estimate for CASYs share price near FYE 2020.

a. $ 154.122

b. $ 192.45

c. $ 307.84

d. $ 257.96

e. $ 343.33

20. Relative to the Sector benchmark for multiples valuation, it appears that:

a. KR is overvalued and CASY is undervalued

b. KR is appropriately valued and CASY is undervalued

c. KR is undervalued and CASY is overvalued

d. KR is overvalued valued and CASY appropriately valued

e. KR and CASY are both overvalued

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