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

question 27

Multiple Choice

Suppose that the average P/E multiple in the oil industry is 16.Mobil Oil is expected to have an EPS of $4.50 in the coming year.The intrinsic value of Mobil Oil stock should be ____.

• A) $28.12
• B) $35.55
• C) $63.00
• D) $72.00
• E) none of these

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