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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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