Suppose that the average P/E multiple in the oil industry is 22.Exxon is expected to have an EPS of $1.50 in the coming year.The intrinsic value of Exxon stock should be
A)$33.00.
B)$35.55.
C)$63.00.
D)$72.00.
E)None of the options

Name: Suppose that the average P/E multiple in the oil industry is 22.Exxon is expected to have an EPS of $1.50 in the coming year.The intrinsic value of Exxon stock should be A)$33.00. B)$35.55. C)$63.00. D)$72.00. E)None of the options
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Question

Quizplus · Accepted Answer

22 × $1.50 = $33.00.

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