On a Particular Date, AirCo Has a Share Price of $77.50

question 31

Multiple Choice

On a particular date, AirCo has a share price of $77.50 and an EPS of $5.00. Its competitor, RoadCo, had an EPS of $0.80. What would be the expected share price of RoadCo on this date, if estimated using the method of comparables?

• A)$12.40
• B)$13.98
• C)$18.39
• D)$10.49

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