Given that the share price is equal to the product of the earnings per share and the price- earnings ratio or multiple', P = EPS x PE, where P = $100 and EPS = $4.00 a. Demonstrate the effect that a 10% change in earnings per share (EPS) and a 10% change in the price-earnings multiple (PE) might have on the share-price (P). (10 marks) b. Assuming a fifteen percent rise in EURUSD over the same timeframe calculate the equivalent return in Euro when there is an increase in earnings and multiple expansion? (7 marks) c. Given EURUSD exchange rate of 0.90, Eurozone inflation of 5% and US inflation of 8%, calculate the 6-month EURUSD forward rate. (8 marks)