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

question 34

Multiple Choice

Suppose that the average P/E multiple in the gas industry is 17. KMP is expected to have an EPS of $5.50 in the coming year. The intrinsic value of KMP stock should be

• A) $28.12.
• B) $93.50.
• C) $63.00.
• D) $72.00.
• E) None of the options are correct.

---

Definitions:

State Hospitals

Government-run hospitals primarily designed for the care and treatment of individuals with mental health issues.

State Mental Hospitals

Publicly funded institutions that provide mental health care and treatment for people with various psychiatric disorders.

Talk Therapy

A form of psychotherapy that involves discussing thoughts, feelings, and behaviors with a mental health professional to address and manage mental health issues.

Prefrontal Lobotomy

A surgical procedure used in the past to treat certain mental disorders, involving the severing of connections in the brain's prefrontal cortex, now largely discredited due to its serious side effects and ethical concerns.