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

question 59

Multiple Choice

Suppose that the average P/E multiple in the oil industry is 22. Exxon is expected to have an EPS of $1.50 in the coming year. The intrinsic value of Exxon stock should be

• A) $33.00.
• B) $35.55.
• C) $63.00.
• D) $72.00.
• E) None of the options are correct.

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Definitions:

Assessment

The systematic evaluation or analysis of a particular subject, object, or phenomenon to determine its characteristics, value, or significance.

Method of Behavior Assessment

Techniques or strategies used to evaluate and understand an individual's behavior, often for the purpose of identifying needs, strengths, or areas for improvement.

Assesses Behavior

The process of observing, measuring, and evaluating an individual's actions or reactions in specific contexts.

Characteristics Behaviors

Observable actions or reactions of individuals that are indicative of their personality or psychological state.