Question

JP Morgan Chase Co. (JPM) has earnings per share of $3.29 and a P/E ratio of 11.12. What is the price of the stock?

a) $36.58
b) $26.94
c) $12.91
d) $29.25

Answer 1

The price of the stock is $36.58.

Step-by-step explanation:

To find the price of the stock, we need to multiply the earnings per share (EPS) by the price-to-earnings (P/E) ratio. In this case, the EPS is $3.29 and the P/E ratio is 11.12. So, the price of the stock can be calculated as:

Price of the stock = EPS × P/E ratio = $3.29 × 11.12 = $36.58

Therefore, the correct answer is $36.58 (a).