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    yikesmn's Avatar
    yikesmn Posts: 2, Reputation: 0
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    #1

    Oct 7, 2009, 01:45 PM
    Calculate stock price if Earnings Per Share increased by $1
    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.
    ArcSine's Avatar
    ArcSine Posts: 969, Reputation: 106
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    #2

    Oct 7, 2009, 04:03 PM
    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.
    shorty7L's Avatar
    shorty7L Posts: 1, Reputation: 1
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    #3

    Feb 28, 2010, 08:04 PM
    If stock is selling for $49 but the company has it stated at $1 per share
    Why would this occur
    kongpheng's Avatar
    kongpheng Posts: 2, Reputation: 1
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    #4

    Mar 5, 2010, 10:12 PM
    Quote Originally Posted by shorty7L View Post
    If stock is selling for $49 but the company has it stated at $1 per share
    why would this occur
    Because stock price go up
    shaneglover's Avatar
    shaneglover Posts: 2, Reputation: 1
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    #5

    Apr 3, 2012, 07:30 AM
    Earning per share is 3.85
    PER is 26
    What is the closing price per share?
    shaneglover's Avatar
    shaneglover Posts: 2, Reputation: 1
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    #6

    Apr 3, 2012, 07:31 AM
    What is the closing price per share
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