On a Particular Date, FedEx Has a Stock Price of $89.27

question 13

Multiple Choice

On a particular date, FedEx has a stock price of $89.27 and an EPS of $7.11. Its competitor, UPS, had an EPS of $0.38. What would be the expected price of UPS stock on this date, if estimated using the method of comparables?

• A) $4.77
• B) $7.16
• C) $9.54
• D) $10.50

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Definitions:

Direct Labor-Hours

Overall working hours expended by personnel directly engaged in the production of goods or delivery of services.

Materials Quantity Variance

The difference between the expected and actual quantity of materials used in production, reflecting efficiency in materials usage.

Direct Materials Purchases Variance

is the difference between the actual cost of direct materials purchased and the expected cost under standard costing.

Actual Operations

The real, observed activities and results of a business's operations, as opposed to projections or estimates.