Homework Help is Here – Start Your Trial Now!
Business
Finance
uppose that in January 2006, Kenneth Cole Productions had sales of $535 million, EBITDA of $56.5 million, excess cash of $105 million, $3.8 million of debt, and 22 million shares outstanding. Use the multiples approach estimate KCP's value based on the following data om comparable firms: E 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. Using the average enterprise value to EBITDA 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 EBITDA multiples in the table above?

uppose that in January 2006, Kenneth Cole Productions had sales of $535 million, EBITDA of $56.5 million, excess cash of $105 million, $3.8 million of debt, and 22 million shares outstanding. Use the multiples approach estimate KCP's value based on the following data om comparable firms: E 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. Using the average enterprise value to EBITDA 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 EBITDA multiples in the table above?

Financial And Managerial Accounting
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter12: Corporations: Organization, Stock Transactions, And Dividends
Section: Chapter Questions
Problem 2MAD: Analyze and compare Bank of America and Wells Fargo Bank of America Corporation (BAC) and Wells...
See similar textbooks
icon
Related questions
Topic Video
Question

Help me and i dont need handwritten i want in text only

Suppose that in January 2006, Kenneth Cole Productions had sales of $535 million, EBITDA of $56.5 million, excess cash of $105 million, $3.8 million of debt, and 22 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?
Transcribed Image Text:Suppose that in January 2006, Kenneth Cole Productions had sales of $535 million, EBITDA of $56.5 million, excess cash of $105 million, $3.8 million of debt, and 22 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?
(Click on the following icon in order to copy its contents into a spreadsheet.) P Price Ē Book 15.01 + 51% - 42% Average Maximum Minimum 2.84 + 186% - 61% Enterprise Value Enterprise Value EBITDA Sales 1.06 8.49 + 106% + 27% - 56% - 22%
Transcribed Image Text:(Click on the following icon in order to copy its contents into a spreadsheet.) P Price Ē Book 15.01 + 51% - 42% Average Maximum Minimum 2.84 + 186% - 61% Enterprise Value Enterprise Value EBITDA Sales 1.06 8.49 + 106% + 27% - 56% - 22%
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps with 2 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Ratio Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Financial And Managerial Accounting
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Financial Reporting, Financial Statement Analysis…
Financial Reporting, Financial Statement Analysis…
Finance
ISBN:
9781285190907
Author:
James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:
Cengage Learning
Managerial Accounting: The Cornerstone of Busines…
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Financial Accounting
Financial Accounting
Accounting
ISBN:
9781305088436
Author:
Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:
Cengage Learning
EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Principles of Accounting Volume 2
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
SEE MORE TEXTBOOKS