Finra Exam Series-7 Topic 2 Question 107 Discussion

Actual exam question for Finra's Series-7 exam

Question #: 107
Topic #: 2

[All Series-7 Questions]

A stock with a current P/E of 17 is selling at $74.50 per share.

What are the company's earnings in the trailing 12 months?

Aabout $4.28

B$6.20

C$1.70

Dimpossible to calculate from this information

Show Suggested Answer

Suggested Answer: A

about $4.28. Divide the market price by the P/E.

by Kaycee at Feb 06, 2025, 01:16 PM

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6 days ago

Hold up, I'm not buying it. This information is not enough to calculate the earnings. It's gotta be option D. Trick question, am I right?

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7 days ago

I agree with Eladia, the P/E ratio is 17 so earnings should be around $4.28.

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8 days ago

Nah, man, that can't be right. With a P/E of 17 and a stock price of $74.50, the earnings have got to be at least $6.20. Option B all the way!

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17 days ago

I think the answer is A) about $4.28.

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17 days ago

Hmm, let's see. The P/E ratio is 17, and the stock price is $74.50. Okay, I'm thinking option A, about $4.28, seems like the right answer here.

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