A.6. Using the price-to-earnings multiple of its peers (see table), calculate the value of GM's stock price given GM's EPS of 6.29. (5 marks) Ford PE=17.81 Honda PE= 4.41 Toyota PE= 8.05 A.7. What is the cross-over rate in capital budgeting. Describe a hypothetical situation where is can be used, and show how it can be used. (5 marks) A.8. Critically evaluate the statement: debt is riskier than equity. A.6. Using the price-to-earnings multiple of its peers (see table), calculate the value of GM's stock price given GM's EPS of 6.29. (5 marks) Ford PE=17.81 Honda PE= 4.41 Toyota PE= 8.05 A.7. What is the cross-over rate in capital budgeting. Describe a hypothetical situation where is can be used, and show how it can be used. (5 marks) A.8. Critically evaluate the statement: debt is riskier than equity