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Finra Series-7 Exam - Topic 2 Question 107 Discussion

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?
A) about $4.28
B) $6.20
C) $1.70
D) impossible to calculate from this information

Finra Series-7 Exam - 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?

Show Suggested Answer Hide 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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Katina
9 months ago
Definitely not impossible, just do the math!
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Brett
9 months ago
Seems too easy, can we really calculate it like that?
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Virgina
10 months ago
Wait, how do we know it’s not $6.20?
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Launa
10 months ago
Totally agree, $4.28 makes sense!
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Gerald
10 months ago
Earnings are about $4.28 based on that P/E.
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Devorah
10 months ago
I’m not sure if we can calculate the earnings directly from this info. It seems like we need more context, but I guess we can try the math.
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Sanjuana
10 months ago
I practiced a similar question last week, and I think the earnings should be around $4.28, but I’m not completely confident.
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Kenneth
11 months ago
I think if we divide the stock price by the P/E, we can find the earnings. So, $74.50 divided by 17 should give us the answer, right?
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Harrison
11 months ago
I remember that the P/E ratio is calculated by dividing the price per share by the earnings per share, but I’m not sure how to rearrange it for this question.
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Ressie
11 months ago
I'm a bit confused on this one. The information given doesn't seem complete to me. I'm not sure I can confidently calculate the earnings from just the stock price and P/E ratio.
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Malcom
11 months ago
Okay, let me think this through step-by-step. The stock price is $74.50 and the P/E ratio is 17, so the earnings should be $74.50 / 17 = $4.38. I think that's the right approach.
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Clorinda
11 months ago
Hmm, I'm a little unsure about this. I know the formula is earnings = stock price / P/E ratio, but I'm not sure if I'm missing any other factors.
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Yan
11 months ago
This one seems straightforward - I just need to use the P/E ratio and the stock price to calculate the earnings.
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Kent
2 years ago
Alright, let's think this through logically. If the stock price is $74.50 and the P/E ratio is 17, then the earnings must be about $4.28. Option A is the way to go, my dudes.
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Santos
2 years ago
Woah, hold on, are we forgetting the most important factor here? The stock price is $74.50, which is a totally random number. Clearly, this is a question designed to make us all look like fools. Option D it is!
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Ronald
1 year ago
Yeah, it's definitely a trick question. Option D is the only logical answer.
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Dannie
1 year ago
I agree, the stock price seems arbitrary. Option D is the safest choice.
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Larae
2 years ago
I'm not sure, but I think it's D) impossible to calculate from this information.
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Ammie
2 years ago
I don't know, guys. This seems a bit too easy. What if the company has been cooking the books? Option C, $1.70, could be the real answer. You never know these days.
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Cherelle
2 years 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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Dottie
1 year ago
Definitely a tricky one, but I'm going with option D as well.
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Bok
1 year ago
I think we're all on the same page here, option D it is.
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Marget
1 year ago
Yeah, without more information, it's impossible to calculate the earnings.
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Georgene
1 year ago
I agree, it seems like a trick question. Option D is the safest bet.
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Monte
2 years ago
I agree with Eladia, the P/E ratio is 17 so earnings should be around $4.28.
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Irving
2 years 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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Fabiola
1 year ago
Option B it is then, $6.20 earnings in the trailing 12 months.
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Ailene
1 year ago
Definitely, the P/E ratio and stock price point to earnings of $6.20.
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Gearldine
1 year ago
Yeah, I agree. Option B seems like the right choice.
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Laura
2 years ago
I think the earnings must be around $6.20.
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Eladia
2 years ago
I think the answer is A) about $4.28.
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Henriette
2 years 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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Huey
2 years ago
Yes, the company's earnings in the trailing 12 months would be about $4.28 with a P/E ratio of 17 and a stock price of $74.50.
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Leigha
2 years ago
I agree, option A, about $4.28, seems to be the correct answer based on the information given.
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