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Suppose that in January 2006, Kenneth Cole Productions had sales of $524 million, EBITDA of $54.3 million, excess cash of $103 million, $4.4 million of debt, and 20 million shares outstanding. Use the multiples approach to estimate K ased on the following data from comparable firms: . Using the average enterprise value to sales multiple in the table above, estimate KCP's share price. . 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? . 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 $. (Round to the nearest cent.) . 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 S. (Round to the nearest cent.) The lowest price will be $ (Round to the nearest cent.) c. Using the average enterprise value to EBITDA multiple in the table above, estimate KCP's share price. KCP's share price using the average enterprise value to EBITDA multiple will be $. (Round to the nearest cent.) Data table (Click on the following icon in order to copy its contents into a spreadsheet.) Enterprise Value Enterpris Sales 1.06 EBI + 106% -56% Average Maximum Minimum P E 15.01 + 51% -42% Price Book 2.84 +186% -61% 8. +2 -2

Suppose that in January 2006, Kenneth Cole Productions had sales of $524 million, EBITDA of $54.3 million, excess cash of $103 million, $4.4 million of debt, and 20 million shares outstanding. Use the multiples approach to estimate K ased on the following data from comparable firms: . Using the average enterprise value to sales multiple in the table above, estimate KCP's share price. . 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? . 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 $. (Round to the nearest cent.) . 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 S. (Round to the nearest cent.) The lowest price will be $ (Round to the nearest cent.) c. Using the average enterprise value to EBITDA multiple in the table above, estimate KCP's share price. KCP's share price using the average enterprise value to EBITDA multiple will be $. (Round to the nearest cent.) Data table (Click on the following icon in order to copy its contents into a spreadsheet.) Enterprise Value Enterpris Sales 1.06 EBI + 106% -56% Average Maximum Minimum P E 15.01 + 51% -42% Price Book 2.84 +186% -61% 8. +2 -2

Financial Reporting, Financial Statement Analysis and Valuation
Financial Reporting, Financial Statement Analysis and Valuation
8th Edition
ISBN:9781285190907
Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Chapter13: Valuation: Earnings-based Approach
Section: Chapter Questions
Problem 13PC
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Suppose that in January 2006, Kenneth Cole Productions had sales of $524 million, EBITDA of $54.3 million, excess cash of $103 million, $4.4 million of debt, and 20 million shares outstanding. Use the multiples approach to estimate KCP's value based on the following data from comparable firms: 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 $ (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 $ (Round to the nearest cent.) The lowest price will be $. (Round to the nearest cent.) c. Using the average enterprise value to EBITDA multiple in the table above, estimate KCP's share price. KCP's share price using the average enterprise value to EBITDA multiple will be $ (Round to the nearest cent.) d. What range of share prices do you estimate based on the highest and lowest enterprise value to EBITDA multiples in the table above? The highest price will be $ (Round to the nearest cent.) The lowest price will be $. (Round to the nearest cent.) Data table (Click on the following icon in order to copy its contents into a spreadsheet.) P E 15.01 + 51% Price Book 2.84 + 186% - 42% - 61% Average Maximum Minimum Print Enterprise Value Enterprise Value Sales 1.06 + 106% - 56% Done EBITDA 8.49 + 27% - 22%
Transcribed Image Text:Suppose that in January 2006, Kenneth Cole Productions had sales of $524 million, EBITDA of $54.3 million, excess cash of $103 million, $4.4 million of debt, and 20 million shares outstanding. Use the multiples approach to estimate KCP's value based on the following data from comparable firms: 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 $ (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 $ (Round to the nearest cent.) The lowest price will be $. (Round to the nearest cent.) c. Using the average enterprise value to EBITDA multiple in the table above, estimate KCP's share price. KCP's share price using the average enterprise value to EBITDA multiple will be $ (Round to the nearest cent.) d. What range of share prices do you estimate based on the highest and lowest enterprise value to EBITDA multiples in the table above? The highest price will be $ (Round to the nearest cent.) The lowest price will be $. (Round to the nearest cent.) Data table (Click on the following icon in order to copy its contents into a spreadsheet.) P E 15.01 + 51% Price Book 2.84 + 186% - 42% - 61% Average Maximum Minimum Print Enterprise Value Enterprise Value Sales 1.06 + 106% - 56% Done EBITDA 8.49 + 27% - 22%
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