Table 13-2 -Refer to Table 13-2

question 21

Multiple Choice

Table 13-2
$$\begin{array} { | l | l | l | l | l | l | l | l | l | } \hline \text { Stack } & \text { Sym } & \text { Yld \% } & \text { P/E } & \text { Val 100s } & \text { Hi } & \text { Lo } & \text { Clase } & \begin{array} { l } \text { Nat } \\\text { Che. }\end{array} \\\hline \text { Baeing Ca. } & \text { BA } & 1.55 & 30.48 & 4,531,600 & 64.78 & 63.70 & 64.62 & + .93 \\\hline \text { Eli Lily and Cu. } & \text { LLY } & 2.60 & 29.71 & 3,765,700 & 58.98 & 58.21 & 58.52 & + .16 \\\hline \text { H. J. Heinz and Ca. } & \text { HNZ } & 3.30 & 15.33 & 1,350,200 & 36.55 & 36.26 & 36.33 & + .21 \\\hline \text { Kellog Cu. } & \text { K } & 2.22 & 20.50 & 1,990,600 & 45.72 & 45.20 & 45.50 & + .24 \\\hline\end{array}$$
-Refer to Table 13-2. Which company had the highest earnings per share?

• A)Boeing Co.
• B)Eli Lilly and Co.
• C)H. J. Heinz and Co.
• D)Kellog Co.

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Definitions:

Discounted Free Cash Flow

A valuation method estimating the attractiveness of an investment opportunity by discounting projected free cash flows.

Average Cost

A method to determine the cost basis of investments by averaging the purchase price of all the shares.

Capital

Funds or resources that individuals or businesses use to invest in assets or operations with the goal of generating income or profit.

Free Cash Flow Valuation Approach

A method of valuing a business by estimating the cash that can be generated after accounting for capital outlays necessary to maintain or expand the asset base.