Calculate the current value of a share of xyz stock based


Calculate the current value of a share of XYZ stock based on the Price/Earnings Multiple method. XYZ's earnings this year will be $2 per share and it is an oil company. What is a share of XYZ's stock worth?

Industry.               -    Average P/E multiple

Micro Computers.          25

Canned Foods.               20

Oil.                                    12

A. $50

B. $40

C. $24

D. $10

E. Insufficient information

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Operation Management: Calculate the current value of a share of xyz stock based
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