Brianne invests using P/E multiples. Currently, the average P/E of major oil corporations is 11.34....
50.1K
Verified Solution
Link Copied!
Question
Finance
Brianne invests using P/E multiples. Currently, the average P/E of major oil corporations is 11.34. Brianne is considering investing in AlfaOil (EPS: $0.11) and Yang Energy (EPS: $32.89). Ideally, Brianne wants to put half of her available investment funds ($30,000) in each stock. She believes that AlfaOil should trade at P/E discount of 2 versus industry average, while Yang Energy should trade at a P/E premium of 1.5 versus industry average. If Alfa Oil shares are selling for $1 and Yang Energy shares are selling for $380, how many shares of each company should Brianne buy?
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.