# a. Given the following information, calculate the expected value for Firm Cs EPS. Data for Firms A and B are

## Question:

a. Given the following information, calculate the expected value for Firm C’s EPS. Data for Firms A and B are as follows: E(EPS_{A}) = $5.10, and σ_{A} = $3.61; E(EPS_{B}) = $4.20, and σ_{B} = $2.96.

b. You are given that σ_{C} = $4.11. Discuss the relative riskiness of the three firms’ earnings.

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**Related Book For**

## Fundamentals of Financial Management

**ISBN:** 978-0324664553

Concise 6th Edition

**Authors:** Eugene F. Brigham, Joel F. Houston

**Question Details**

Chapter #

**13**Section: Problems

Problem: 3

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