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 are correct.


A. $33.00.

22 × $1.50 = $33.00.

Business

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