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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Definitions:

OCD

Obsessive-Compulsive Disorder is a psychological disorder marked by persistent unwanted thoughts (obsessions) and repetitive actions (compulsions).

Relatively Often

A term indicating that an event or occurrence happens frequently, but not necessarily at regular intervals or with uniform intensity.

Social Anxiety Disorder

A chronic mental health condition in which social interactions cause irrational anxiety, fear, self-consciousness, and embarrassment.

DSM-5

The fifth edition of the Diagnostic and Statistical Manual of Mental Disorders, a widely used manual for diagnosing and classifying mental disorders.