Suppose that in January 2006, Kenneth Cole Productions had EPS of $1.76 and a book value of equity of $12.93 per share. Use the multiples approach to estimate KCP's value based on comparable firms given in the following table: a. Using the average P/E multiple from the table above, estimate KCP's share price. b. What range of share prices do you estimate based on the highest and lowest P/E multiples in the table above? c. Using the average price to book value 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 price to book value multiples in the table above? a. Using the average P/E multiple from the table above, estimate KCP's share price. KCP's share price for this case will be $ (Round to the nearest cent.) b. What range of share prices do you estimate based on the highest and lowest P/E multiples in the table above? The highest price will be $ The lowest price will be $ (Round to the nearest cent.) (Round to the nearest cent.) c. Using the average price to book value multiple in the table above, estimate KCP's share price. KCP's share price for this case will be $ ☐ (Round to the nearest cent.) d. What range of share prices do you estimate based on the highest and lowest price to book value multiples in the table above? The highest price will be $ (Round to the nearest cent.) Data table - X

After researching the competitors of EJH Enterprises, you determine that most comparable firms have the following valuation ratios: . EJH Enterprises has EPS of $1.90, EBITDA of $300 million, $30 million in cash, $40 million in debt, and 102 million shares outstanding. What range of prices is consistent with both sets of multiples? The range of prices will be: Lowest price within both ranges, the P/E and EV/EBITDA ranges, is $ (Round to two decimal places.) Highest price within both ranges, the P/E and the EV/EBITDA ranges, is $ (Round to two decimal places.) Data table (Click on the following icon in order to copy its contents into a spreadsheet.) EV/EBITDA P/E Comp 1 12 Comp 2 11 Comp 3 12.5 19 18 20 Comp 4 10 17 Print Done -

The S&P 500 Index is one of the most commonly used benchmark indices for the U.S. equity markets. Consisting of 500 companies, it is a market value-weighted index. This means that each company’s performance is reflected in the index, weighted by the ratio of the company’s value to the total value of all the companies.   Based on your understanding of P/E ratios, in which of the following situations would the average trailing P/E ratio (current price divided by earnings per share over the previous 12 months) of the S&P 500 Index be higher?   a. Forecast earnings for S&P 500 companies are expected to rise in the future.   b. Forecast earnings for S&P 500 companies are expected to fall in the future.     You invest $100,000 in 40 stocks, 20 bonds, and a certificate of deposit (CD). To which kind of risk will you primarily be exposed?   a.Portfolio risk   b.Stand-alone risk     Generally, investors would prefer to invest in assets that…

You are thinking about investing in either X corp, or Y corp. Based on the following market measures, which company could be the best option based on possible return of investment?   x y Price/Earnings Ratio 10.39 12.27 Earnings per Common Share 3.5 5.4 Divident Payout .464 .320