Just question 3.

Use the information in the table below to answer questions 2 and 3. Assume that both Firm A and Firm B have a risk-adjusted equity cost of capital of 20%. Firm A Firm B Reported EPS $12 $12 Analyst's EPS decomposition: Permanent component Transitory component Value-irrelevant component 80% 10% 10% 60% 35% 5% 2) The implied share price of Firm A's stock is a. $12.00. b. $48.00. c. $49.20. d. $54.40. a. 3) The implied total earnings multiple of Firm A is 1.00. b. 4.10. c. 5.00. d. 10.00