Given that the share price is equal to the product of the Earnings per Share and the Price[1]Earnings Ratio or Multiple, P = EPS x PE, where P = $20 and EPS = $2.00

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).

b. Explain which of the above scenarios is ideal for a long-biased investor.

c. Explain which of the above scenarios is ideal for a short-biased investor.

d. What type of stock does this resemble and why?

e. Assuming a fifteen percent fall in EURUSD over the same timeframe, calculate the equivalent return in Euro when there is an increase in EPS and PE.