year. The maximum price you would pay for the stock today is 12% return. if you wanted to earn a A. $23.91 B. $14.96 C. $26.52 D. $27.50 E. None of the options are correct. 8. Suppose that the average P/E multiple in the oil industry is 20 . Dominion Oil is expected to bave an EPS of $3.00 in the coming year. The intrinsic value of Dominion Oil stock should be A. $28.12. B. $35.55. C. $60.00 D. $72.00. E. None of the options are correct. 9. A firm has PVGO of 0 and a market capitalization rate of 10%. What is the firm's P/E ratio? A. 12 B. 10 C. 10.25 D. 18.55 10. The current market price of a share of Disney stock is $60. If a call option on this stock has strike price of $65, the call A. is out of the money. B. is in the money. C. can be exercised profitably. D. is out of the money and can be exercised profitably. E. is in the money and can be exercised profitably. 11. The maximum loss a buyer of a stock call option can suffer is equal to year. The maximum price you would pay for the stock today is 12% return. if you wanted to earn a A. $23.91 B. $14.96 C. $26.52 D. $27.50 E. None of the options are correct. 8. Suppose that the average P/E multiple in the oil industry is 20 . Dominion Oil is expected to bave an EPS of $3.00 in the coming year. The intrinsic value of Dominion Oil stock should be A. $28.12. B. $35.55. C. $60.00 D. $72.00. E. None of the options are correct. 9. A firm has PVGO of 0 and a market capitalization rate of 10%. What is the firm's P/E ratio? A. 12 B. 10 C. 10.25 D. 18.55 10. The current market price of a share of Disney stock is $60. If a call option on this stock has strike price of $65, the call A. is out of the money. B. is in the money. C. can be exercised profitably. D. is out of the money and can be exercised profitably. E. is in the money and can be exercised profitably. 11. The maximum loss a buyer of a stock call option can suffer is equal to