Multiple Choice
If Smith Corporation reported a net income of $500,000 for the trailing 12 months and has 100,000 weighted average common shares outstanding, what is Smith’s earnings per share (EPS) for the period?
16
views
14. Financial Statement Analysis
Ratios: Earnings Per Share (EPS)
Struggling with Financial Accounting?
Join thousands of students who trust us to help them ace their exams!Watch the first videoMultiple Choice
JPMorgan Chase (JPM) has earnings per share (EPS) of \$3.75 and a price-to-earnings (P/E) ratio of 47. What is the current stock price?
A
\$12.53
B
\$43.25
C
\$176.25
D
\$125.00
Verified step by step guidance1
Understand the relationship between the Price-to-Earnings (P/E) ratio, Earnings Per Share (EPS), and the stock price. The formula to calculate the stock price is: Stock Price = EPS × P/E Ratio.
Identify the given values in the problem: EPS = $3.75 and P/E Ratio = 47.
Substitute the given values into the formula: Stock Price = 3.75 × 47.
Perform the multiplication operation to find the stock price. Ensure accuracy in calculation.
Verify the calculated stock price against the provided options to confirm the correct answer.
5:39mWatch next
Master Ratios: Earnings Per Share (EPS) with a bite sized video explanation from Brian
Start learningRelated Videos
Related Practice
Ratios: Earnings Per Share (EPS) practice set
Problem sets built by lead tutorsExpert video explanations