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

Question 86

Multiple Choice

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


A) $28.12.
B) $35.55.
C) $63.00.
D) $72.00.
E) None of the options

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