On a particular date, FedEx has a stock price of $89.27 and an EPS of $7.11. Its competitor, UPS, had an EPS of $0.38. What would be the expected price of UPS stock on this date, if estimated using the method of comparables?
A) $4.77
B) $7.16
C) $9.54
D) $10.50

Question

Quizplus · Accepted Answer

A) FedEx P/E = $89.27 / 7.11 = $12.5556; 11ea84dc_f541_72ca_9a63_336c2fd89ac2_TB1316_11_TB1316_11

On a Particular Date, FedEx Has a Stock Price of $89.27