FedEx Corporation (FDX) has a current share price of

$154.01

and is expected to have earnings per share (EPS) next year of

$12.77

per share. Analysts expect that FedExs closest competitor, United Parcel Service, Inc. (UPS), will have earnings next year of

$9.33

per share.

FedEx's cost of capital is 11%.

What is your current estimate of the value of one share of UPS stock using the method of comparables?

A.

$210.79

B.

$150.57

C.

$12.06

D.

$112.52

E.

$84.82

F.

None of the above is withing $0.35 of the value of one share of UPS stock.