1. A stockholder of Walmart, your good friend, has asked you to help him estimate the firms stock price. The average price/earnings ratio for similar super market companies is 22. The earnings per share for Walmart for the most recent year is $2.85. Net income for the most recent year is $3.47 million. Book value per share of common stock is $48 per share. Estimate the value of Walmart stock, using a comparable approach.

a. $16.84 per share

b. $105.60 per share

c. $62.70 per share

d. 48.37 per share

e. not enough information to estimate share price