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:

Protein Synthesis

The biological process through which cells generate new proteins, involving transcription of DNA into mRNA and translation of mRNA into a polypeptide chain.

Exponential Growth

A growth pattern where the rate of increase is proportional to the current size, leading to faster and faster growth over time.

Cartilage

A type of flexible connective tissue found in various parts of the body including joints, ear, and nose.

Exocrine Glands

Glands that secrete substances onto an epithelial surface by way of a duct, examples include sweat, salivary and digestive glands.