1. Federated Investors’ has a 2017 EPS of $2.00. Its most recent P/Es are 14.5, 20.0, and 20.8. Use the P/E as an earnings multiplier model to find the stock’s intrinsic value. If it is currently selling for $26.52, is it under or over valued?
2. (calculating future value) You bay a 5 year, 9% CD for $2,000. I mtetest is compounded annually. How much is it worth at maturity?