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

question 98

Multiple Choice

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

• A) $28.12.
• B) $35.55.
• C) $60.00.
• D) $72.00.
• E) None of the options are correct.

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Definitions:

Method-Of-Place

A mnemonic device aiding memory by associating information with specific physical locations.

Learning Styles

The preferred methods or approaches through which individuals absorb, process, and retain new information and skills.

Memory Strategy

Techniques used to encode, store, and retrieve information more effectively.

Chunking Strategy

A cognitive approach to learning that involves breaking down information into smaller, manageable units or chunks for easier processing and recall.