Suppose Air Canada Has a Current Share Price of $10

question 75

Multiple Choice

Suppose Air Canada has a current share price of $10.50 and an EPS of 1.12.Its competitor,WestJet,has an EPS of 3.13.Using the method of comparables,what is the expected price of WestJet stock?

• A)$29.34
• B)$3.76
• C)$32.87
• D)$36.81
• E)$25.64