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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