Question

In addition to​ footwear, Kenneth Cole Productions designs and sources​ handbags, apparel, and other accessories. You​ decide, therefore, to consider comparables for KCP outside the footwear industry. You also know the following about​ KCP: it has sales of $ 518 ​million, EBITDA of $ 55.6 ​million, excess cash of $ 100 ​million, $ 3 million of​ debt, EPS of $ 1.65​, the book value of equity of $ 12.05 per​ share, and 21 million shares outstanding. a. Suppose that​ Fossil, Inc., has an enterprise value to EBITDA multiple of 9.78 and a​ P/E multiple of 15.83. What share price would you estimate for KCP using each of these​ multiples, based on the data for​ KCP? b. Suppose that Tommy Hilfiger Corporation has an enterprise value to EBITDA multiple of 8.05 and a​ P/E multiple of 17.57. What share price would you estimate for KCP using each of these multiples based on the data for​ KCP? a. Suppose that​ Fossil, Inc., has an enterprise value to EBITDA multiple of 9.78 and a​ P/E multiple of 15.83. What share price would you estimate for KCP using each of these​ multiples, based on the data for​ KCP? Using the Enterprise​ value/EBITDA ratio for Fossil the price is ​$ nothing. ​ (Round to the nearest​ cent.) Using the​ P/E ratio for​ Fossil, the price is ​$ nothing. ​(Round to the nearest​ cent.) b. Suppose that Tommy Hilfiger Corporation has an enterprise value to EBITDA multiple of 8.05 and a​ P/E multiple of 17.57. What share price would you estimate for KCP using each of these multiples based on the data for​ KCP? Using the Enterprise​ value/EBITDA ratio for Tommy Hilfiger​ Corporation, the price is ​$ nothing. ​ (Round to the nea

Answer 1

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