1. Company A has a share price of $4,400 and forward EPS of $1,100. Company B has a share price of $20 and a forward EPS of 10. Assuming that everything else about these two companies is identical (i.e. growth rate, risk, capital structure, etc.) which company is more expensive?

a. company a

b. company b

2. Company A has a PE of 44 and Company B has a PE of 51. Assuming that everything else about these two companies is identical (i.e. growth rate, risk, capital structure, etc.) which company is more expensive?

a. company a

b. company b

3. Company A has a share price of $42 and a forward EPS of 21. What is the forward PE?

a. .5

b. 2

c. 21

d. none

4. What is true regarding the difference in the PE ratio and the forward PE ratio?

a. forward PE is always smaller than PE

b. pe is based on future earnings

c. pe is based on GAAP earnings

d. forward PE is based on an estimate of earnings

5. Company A has a PE of 20 and forward earnings of 100. What is the share price?

a. 5

b. 2,000

c. 100

d. 20

6. Company A has a share price of $40 and 200,000 shares outstanding. What is the market cap?

a. 5,000

b. 200,000

c. 8,000,000

d. none