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1) On the particular date, FedEx has a stock price of= $88.66 and the EPS of= $6.34. Its competitor, UPS, had the EPS of $0.40. What would be expected price of UPS stock on this date, if evaluated by using method of comparables?

A) $5.59
B) $8.39
C) $10.49
D) $13.98

2) Assume that stock gave realized return of= 20% per year over a 2-year time period and a 10% return over the third year. Geometric average annual return is:

A) 9.70%
B) 11.20%
C) 14.96%
D) 16.55%

3) Conundrum Mining is expected to generate $12 million, $18 million, $22 million and $26 million in free cash flows over the next 4 years, after which they are expected to grow at the rate of 5% per year. If weighted average cost of capital is= 12% and Conundrum has cash of $80 million, debt of= $60 million, and 30 million shares outstanding, determine Conundrum's expected present share price?

i) $10.84
ii) $13.72
iii) $16.16
iv) $16.2

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  • Category:- Basic Finance
  • Reference No.:- M914874

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