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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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