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

Question 34

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 options are correct.

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