Questions: Use the following information about Wal-Mart stock. 52 weeks HI LO STOCK DIV YLD% P/E (1000 s) CLOSE CHG 50.26 44.72 WMT 0.21 1.7 19 9780 46.69 -0.12 Find the annual earnings per share. Round your answer to the nearest cent, if necessary. The annual earnings per share is .

Solution Steps

To find the annual earnings per share (EPS) for Wal-Mart stock, we can use the formula:
\[ \text{EPS} = \frac{\text{CLOSE}}{\text{P/E}} \]
where CLOSE is the closing price of the stock and P/E is the price-to-earnings ratio. This formula gives us the earnings per share by dividing the stock's closing price by its P/E ratio.

We are provided with the following data for Wal-Mart stock:

• Closing Price (\(C\)) = 46.69
• Price-to-Earnings Ratio (\(P/E\)) = 19

To find the annual earnings per share, we use the formula: \[ \text{EPS} = \frac{C}{P/E} \] Substituting the values: \[ \text{EPS} = \frac{46.69}{19} \approx 2.4573684210526316 \]

Rounding the calculated EPS to the nearest cent gives: \[ \text{EPS} \approx 2.46 \]

Final Answer