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

question 94

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 above

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Definitions:

Childrearing Years

The period in an adult's life dedicated to raising children, typically ranging from birth to the teenage years.

Newlywed

A person who has recently entered into marriage and is in the early stage of marital life.

Late Adulthood

A phase of life typically defined as beginning at the age of 65, characterized by significant changes in physical health, social roles, and cognitive function.

Financial Security

A state of having stable income or resources sufficient to cover one's living expenses without worry.