What is the implied appropriate pe for hunt oil company

Assignment Help Finance Basics
Reference no: EM13269545

Imagine you are estimating the market value of Hunt Oil Company's stock, which is not publicly traded. So you decide to use the PE model for your valuation. You observe the following PE Ratio comparisons for your project:
Company PE Ratio (from the Internet)
a. Exxon-Mobil 9
b. Chevron 10
c. ConocoPhillips 11
a. What is the implied "appropriate" PE for Hunt Oil Company?
b. Assuming Hunt Oil Company's EPS is = $4.10, what is your estimate for the market value of the company's stock?

Reference no: EM13269545

Questions Cloud

Compute how many such photons are emitted : A 60.0-W incandescent light-bulb produces about 4.00% of its energy as visible light. Assuming that the light has an average wavelength of 510.0 nm, calculate how many such photons are emitted per second by a 60.0-W incandescent lightbulb
What is the volume of the air in the container : On a warm day (86?F), an air-filled balloon occupies a volume of 0.250m3 and has a pressure of 18.0lb/in2, what is the volume of the air in the container
Concept of the democratic deficit : Do international institutions such as WTO and OECD help or hider democracy? Discuss and drawing upon the concept of the "democratic deficit" and using examples from case study countries.
Explain capable of being consistently duplicated : If a person were to say that a scientific finding was replicated, he or she would be saying that the finding was
What is the implied appropriate pe for hunt oil company : Imagine you are estimating the market value of Hunt Oil Company's stock, which is not publicly traded. So you decide to use the PE model for your valuation.
Calculate the energy of the ground state : To make an order-of-magnitude estimate of the energy level spacings in the nucleus, Calculate the energy of the ground state
Explain what is the molarity of methanol in the solution : An aqueous solution is 5.80% methanol by mass with d=0.988g/ml. What is the molarity of methanol in this solution
Estimate of the market value of company preferred stock : The average yield on preferred stock of this type among other companies is 6%. Given these conditions, what is your estimate of the market value of this company's preferred stock?
Write a program to calculate and outputs the monthly payback : The user of your program will know the employee's name and the gross pay for the employee. Each employee has the following deductions taken from his gross pay: Federal Income Tax: 15% State Tax: 3.5% Social Security + Medicare Tax: 8.5% Health Ins..

Reviews

Write a Review

Finance Basics Questions & Answers

  Draw a timeline of the returement needs

Chad is saving for retirement. Expects to spend $43,500 per year for 15 years. Earns 6% per year with semi-annual compounding on his invested funds. Will draw down on his retirement foun at the beginning of retirement.

  What is the payback period

The company anticipates cash flows of $430,386, $512,178, $562,255, $764,997, $816,500, and $825,375 over the next six years. What is the payback period?

  Zero debt to successively higher levels of debt

If a tax paying company went from zero debt to successively higher levels of debt, determine why would you expect its stock price to rise?

  Exercise an american call before expiration

What would be your cash proceeds if you exercise the option on October 1 (index options are settled by cash)?

  Bonds-holding period yield

Your boss has again asked for your help. He needs to figure out the holding period yield on a candidate bond for inclusion in a pension bond portfolio and whether your company should purchase it.

  Firm capital investment evaluation

You are heading up your firm's capital investment evaluation efforts. Currently, the capital investment group is deliberating over the three investment proposals below.

  Find the optimal time to abandon the investment

An asset costs $100,000 and will create cash benefits of $30,000 at the end of each year for five years for Hartford company. Salvage value are $50,000, $40,000, and $0 at the end of year 3, year 4, and year 5 respectively.

  Discuss the lower bound for option prices

Discuss the lower bound for option prices and the put-call parity with and without dividend yields; and explain why.

  Find required external funds

The financial statements of Eagle Sport Supply are given below. For simplicity, Costs include interest. Suppose that Eagle's assets are proportional it its sales.

  Calculate the npv in u.s. dollars

Calculate the NPV in U.S. dollars. (Show all calculations and ignore working capital)

  Estimate the value of common stock

The Corporation had declining sales and rising expenses over the last decade and expects this trend to continue. As a result, company predicts that earnings and dividends will decline indefinitely at a rate of 4 percent per year.

  Computation of time value of money

You are offered the annuity which will pay you $9,000 at the end of each of next 10 years. What is maximum amount you would be willing to pay today for this annuity? (Suppose you require 15% rate of return on investment of this nature.)

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd