Question: Analysts that follow JPMorgan Chase, one of the nation's largest providers of financial services, estimate that the corporation's earnings per share will increase from $4.68 in the current year to $4.97 next year.
a. What is the amount of the increase? (Round your answer to 2 decimal places.)
b. What effect, if any, should this increase have on the value of the corporation's stock?
The stock's market value should increase.
The stock's market value should decrease.
The stock's market value should remain the same.