Suppose that in January 2006, Kenneth Cole Productions had EPS of $1.65 and a book...

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Accounting

Suppose that in January 2006, Kenneth Cole Productions had EPS of $1.65 and a book value of equity of $12.05 per share.
EPS 1.65
Book value of equity 12.05
a. Using the average P/E multiple in Table 9.1, estimate KCPs share price.
Price per share
b. What range of share prices do you estimate based on the highest and lowest P/E multiples in Table 9.1?
Range based on highest to lowest
High
Low
c. Using the average price to book value multiple in Table 9.1, estimate KCPs share price.
Price per share
d. What range of share prices do you estimate based on the highest and lowest price to book value multiples in Table 9.1?
Range based on highest to lowest
High
Low

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