I've gone mad trying to answer this question. How do I calculate what the stock price will be if earnings per share increases by $1? The current closing price is $34.27 and the current PE ratio os 1.12.

The long way, for when you've got time on your hands:

With what you've given, .

1. Solve for E to determine current EPS.
2. Add one dollar to it.
3. Recompute P, using the new EPS, figuring that the PE ratio holds constant at 1.12.

The short way, for when you're dashing out of the building 'cause you smell smoke, but you want to solve the problem before you head for the exit:

Figure that if Price is always 112% of EPS, and one dollar gets added to EPS, how much would get added to Price?

Now if you've really got time on your hands, do it both ways just for kicks, to make sure your calculator returns the same amount both times.

If stock is selling for $49 but the company has it stated at $1 per share
Why would this occur

Quote:

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Originally Posted by shorty7L

If stock is selling for $49 but the company has it stated at $1 per share
why would this occur

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Because stock price go up

Earning per share is 3.85
PER is 26
What is the closing price per share?

What is the closing price per share