Suppose CP Rail Has a Current Share Price of $194

question 112

Multiple Choice

Suppose CP Rail has a current share price of $194.83 and an EPS of 9.01.Its competitor,CN Rail,has an EPS of 4.27.Using the method of comparables,what is the expected price of CN Rail stock?

• A)$411.10
• B)$45.63
• C)$21.62
• D)$92.33
• E)$102.86

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Definitions:

Award Fee

A financial incentive provided beyond the base contract price, based on a contractor’s performance in meeting or exceeding specified criteria.

Goals

Specific outcomes or achievements toward which efforts are directed in a project or activity.

Objectives

Specific, measurable, achievable, relevant, and time-bound goals that are set to guide effort and evaluate progress.

Fixed Unit Price Contract

A contract type where the price for each unit of work is agreed upon before the work begins, regardless of the total cost.