Suppose That the Average P/E Multiple in the Oil Industry

question 94

Multiple Choice

Suppose that the average P/E multiple in the oil industry is 16.Shell Oil is expected to have an EPS of $4.50 in the coming year.The intrinsic value of Shell Oil stock should be

• A)$28.12.
• B)$35.55.
• C)$63.00.
• D)$72.00.

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