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

question 85

Multiple Choice

Suppose that the average P/E multiple in the oil industry is 20.Dominion Oil is expected to have an EPS of $3.00 in the coming year.The intrinsic value of Dominion Oil stock should be

• A)$28.12.
• B)$35.55.
• C)$60.00.
• D)$72.00.

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Definitions:

Vasa Recta

A series of straight capillaries in the kidney that serve as an extension of the loop of Henle, playing a critical role in the concentration of urine.

Nephron Loop

A U-shaped tube in the nephron of the kidney that plays a crucial role in concentrating urine and conserving water.

Proximal Tubule

A major part of the nephron in the kidney, involved in the reabsorption of water, ions, and nutrients from the filtrate and their return to the bloodstream.

Urinalysis Test Strip

A diagnostic tool used to detect and measure various compounds in urine, such as glucose or proteins.