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?
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:
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?