(Please provide necessary formulas and steps)

John is analyzing two stocks for his next investment. Given a limited budget, he can only choose one of the two options. He collected some important information about the stocks in order to assist his decision making by using the price earning multiplier effect. The followings are related information about his two stock options.

Key Financial Report as at 31st December 2019
	Stock A	Stock B
Net profit	$30 million	$50 million
Number of outstanding stock	15 million unit	10 million units
Relative P/E multiplier	1.3 times	2.5 times

a) Find the Earnings Per Share (EPS) for stock A and B.

b) Calculate intrinsic value of both stocks if John predicted that the market ratio should be 10.

c) John also found that the price of stock A today is $30 per unit while stock B cost $100 per unit. Based on the answer on b), which stock should stock buy? Why?

d) What would be the return if stock follow the decision on the answer c)?