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You want to estimate the stock price for BP. You know that similar companies in the oil and gas business have a P/E ratio of
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You want to estimate the stock price for BP. You know that similar companies in the oil and gas business have a P/E ratio of 18. You expect the Net Income for BP to be $50 M this year. If BP has 30 M shares outstanding, what should we expect the price of BP to be?
$30
$50
$900
$1.66
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