Problem 12-8 (LO12.3)

Analysts that follow JPMorgan Chase, one of the nations largest providers of financial services, estimate that the corporations earnings per share will increase from $3.24 in the current year to $3.49 next year.

a.	What is the amount of the increase? (Round your answer to 2 decimal places.)

Increase

$

b.

What effect, if any, should this increase have on the value of the corporations stock?

	The stocks market value should increase.
	The stocks market value should decrease.
	The stocks market value should remain the same.