Problem:
On a particular date, FedEx has a stock price of $88.66 and an EPS of $6.34. Its competitor, UPS, had an EPS of $0.40.
Requirement:
Question: What would be the expected price of UPS stock on this date, if estimated using the method of comparables?
A) $5.59
B) $8.39
C) $10.49
D) $13.98
Note: Provide support for your rationale.